Which of the Following Correctly Describes the New Classical Cycle

question 79

Multiple Choice

Which of the following correctly describes the new classical cycle theory of the business cycle?

• A) An unexpected change in the quantity of money can trigger a business cycle.
• B) Rational expectations keep the money wage from changing quickly.
• C) An expected change in the level of exports can trigger a business cycle.
• D) An expected tax rate change can trigger a business cycle.

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Definitions:

Serratus Anterior

A muscle that originates on the surface of the upper eight or nine ribs and inserts along the entire anterior length of the medial border of the scapula, playing a key role in the movement of the shoulder blade.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

Teres Major

A muscle in the upper arm, which helps in the rotation and adduction of the shoulder.

Supraspinatus

A muscle situated on the upper part of the back that assists in the abduction of the arm.