The Factor Leading to Business Cycles in the Keynesian Model

question 168

Multiple Choice

The factor leading to business cycles in the Keynesian model is .

• A) unanticipated changes in aggregate demand
• B) unanticipated changes in aggregate supply
• C) a speed up in money growth
• D) changes in business confidence

---

Definitions:

Large Lots

Bulk quantities of goods, often purchased or produced to achieve economies of scale but can lead to increased storage costs and risks.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Managerial Levers

The tools or mechanisms that managers can use to control, influence, or adjust processes in pursuit of organizational objectives.

Large Lots

A production or purchasing strategy focusing on creating or buying goods in bulk quantities to benefit from economies of scale, despite the risk of increased inventory holding costs.