CA Foundation P4 · Chapter 6 · Question 10 of 15
The 'sunspot theory' of business cycles, which linked fluctuations in agricultural output to changes in sunspot activity, was put forward by:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) W. S. Jevons
Explanation
Jevons suggested that sunspots affect weather, which affects agricultural yields; since agriculture was a large share of economic activity, this would affect trade and industry. It is an example of an external (exogenous) explanation of cycles.
More Business Cycles MCQs
- Q12A commonly used rule of thumb defines a recession as:
- Q13To counter a recession, the government is most likely to:
- Q14Samuelson and Hicks explained business cycles through the interaction of:
- Q15Which of the following statements about the impact of business cycles is INCORRECT?
- Q1The correct sequence of the phases of a business cycle is: