Both New Keynesian and New Classical Cycle Theories Claim That

question 18

Multiple Choice

Both new Keynesian and new classical cycle theories claim that .

• A) shifts in the SAS curve are the main impulse for a business cycle
• B) expected changes in the quantity of money can trigger a business cycle
• C) unexpected changes in aggregate demand trigger a business cycle
• D) animal spirits can trigger a business cycle

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Definitions:

Sodium

A chemical element with symbol Na and atomic number 11, an essential ion for blood pressure regulation, fluid balance, and nerve function.

Incomplete Tetanus

A state of muscle contraction characterized by rapid cycles of contraction with partial relaxation in between.

Treppe

A phenomenon in muscle physiology where successive contractions become increasingly more forceful after several stimuli, often referred to as the "staircase effect."

Wave Summation

The phenomenon where muscle contractions become stronger due to the frequency of stimulation without allowing the muscle to fully relax between successive stimuli.