The Factor That Leads to Business Cycles Within Keynesian Cycle

question 344

Multiple Choice

The factor that leads to business cycles within Keynesian cycle theory is

• A) fluctuations in business confidence.
• B) adverse shocks to international trade.
• C) the growth rate in the quantity of money.
• D) the growth rate in labor productivity.

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Definitions:

Business for Profit

An enterprise or entity engaged in commercial, industrial, or professional activities with the aim of generating financial returns for its owners or shareholders.

Fiduciary Duty

A legal obligation of one party to act solely in the interest of another party, such as a trustee to a beneficiary or a corporate board member to shareholders.

Legal Entity

A legal entity refers to any company or organization that holds legal rights and responsibilities, including the ability to enter into contracts, sue, and be sued.

Taxed on Income

The practice where individuals or entities are required to pay a portion of their earnings or profits to the government as tax.