The Cycle Theory States That Only Unexpected Fluctuations in Aggregate

question 378

Multiple Choice

The cycle theory states that only unexpected fluctuations in aggregate demand are the main source of business cycles.

• A) Keynesian
• B) new classical
• C) new Keynesian
• D) monetarist

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Definitions:

Digitally Altered

Images or sounds that have been modified using digital technology.

Misinformation Effect

A memory distortion phenomenon where post-event information interferes with the memory of the original event.

Elizabeth Loftus

A cognitive psychologist known for her work on the malleability of human memory and the misinformation effect.

Smashed

Often used in psychology experiments to denote the influence of wording on memory; in general, refers to something being violently broken into pieces.