The correct answer is C. Supply shocks caused by major innovations.
While unexpected financial bubbles, shocks to the money supply, and supply shocks can all contribute to business cycle fluctuations, economists generally do not view major innovations as an underlying cause.
Here's why:
Unexpected financial bubbles and shocks to the money supply are considered exogenous factors that come from outside the economic system and can trigger fluctuations.
Supply shocks caused by major innovations can be considered endogenous factors that arise within the economic system itself.
However, major innovations are often seen as positive, leading to long-term growth and increased productivity. While they may cause temporary disruptions in the short term, they are not typically viewed as fundamental drivers of business cycles.
Therefore, while major innovations can have an impact on business cycles, they are not considered an underlying cause by economists.
Complete question:
Which of the following is not seen by economists as an underlying cause of business cycle fluctuations?
A. Unexpected financial bubbles that eventually burst.
B. Shocks to the money supply by the nation's central bank.
C. Supply shocks caused by major innovations.
D. All of these are identified as causes of business cycle changes.