The Real Business Cycle Theory

question 243

Multiple Choice

The real business cycle theory

• A) is an extension of the Keynesian view of business cycles.
• B) is an extension of the adaptive expectations theory of business cycles.
• C) suggests that instability is caused by shifts in the long-run aggregate supply curve.
• D) suggests that instability is caused by shifts in the aggregate demand curve caused by changing consumer confidence in the economy.

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