Q1. According to mainstream business cycle theory, business cycles are caused primarily by variations in: A) aggregate demand. B) productivity. C) technological improvements.
Q2. Which business cycle theory proposes that the growth rate of potential real GDP fluctuates over time? A) Mainstream business cycle theory. B) Real business cycle theory. C) Both real business cycle theory and mainstream business cycle theory.
Q3. Which of the following business cycle theories proposes that only unexpected changes in aggregate demand causes economic cycles? A) New Classical. B) New Keynesian. C) Monetarist.
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