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Question
According to Keynesians, the main source of the business cycle is
a) changes in the amount of money in the economy.
b) waves of optimism and pessimism that cause business investment in capital goods to fluctuate.
c) changes in the prices of oil and other resources.
d) changes in productivity.
According to real business cycle (RBC) theory, the main source of the business cycle is
a) Changes in the amount of money in the economy.
b) Waves of optimism and pessimism that cause business investment in capital goods to fluctuate.
c) Changes in the prices of oil and other resources.
d) Changes in productivity.
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