Which Theory of the Business Cycle Emphasizes Initiating Changes in Aggregate

question 115

Multiple Choice

Which theory of the business cycle emphasizes initiating changes in aggregate supply?

• A) the Friedman "fooling" theory
• B) the real business cycle theory
• C) the Keynesian theory
• D) the new classical theory

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Definitions:

Compensatory Model

A selection decision model in which a high score in one area can make up for a low score in another area

Multiple Hurdle Model

A sequential strategy in which only the applicants with the highest scores at an initial test stage go on to subsequent stages.

Structured Interview

An interview in which a set of standardized questions with an established set of answers is used.

Non-Directive Style

Leadership or counseling approach where the leader or counselor provides minimal guidance, allowing individuals to explore thoughts and feelings independently.