What is Schumpeter's theory of business cycles called?
Keynesian cycles
Schumpeterian cycles
Marxian cycles
Ricardian cycles
Answer
Schumpeterian cycles, named after economist Joseph Schumpeter, describe the cyclical nature of economic growth driven by innovation. Schumpeter argued that technological advancements lead to the introduction of new products and processes, creating economic expansion. However, as these innovations become established, their impact diminishes, leading to a decline in growth and potential economic downturns. This cycle of innovation, expansion, and contraction drives the long-term trajectory of economic development.
Schumpeterian Secrets: Unveiling the Mind of an Economic Pioneer
Subscribe Now!
Learn something
new everyday
Playing quizzes is free! We send 1 quiz every week to your inbox