Which Business Cycle Theory Emphasizes That, Because of Long- Term

question 70

Multiple Choice

Which business cycle theory emphasizes that, because of long- term wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?

• A) Keynesian cycle theory
• B) the new Keynesian cycle theory
• C) monetarist cycle theory
• D) the new classical cycle theory

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Definitions:

Concrete

Relating to tangible objects or specific things rather than ideas or abstract qualities.

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A psychological theory suggesting that the distance (temporal, spatial, social, or hypothetical) from an event affects our thinking about it, with more distant events considered in more abstract terms.

Term Paper

An extensive research paper written by students over an academic term, depicting their understanding and insights on a specified subject.

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