The Business Cycle Impulse in the New Classical Theory of the Business

question 60

Multiple Choice

The business cycle impulse in the new classical theory of the business cycle is

• A) expected changes in aggregate demand.
• B) fluctuations in investment coupled with rigid wages.
• C) unexpected changes in aggregate demand.
• D) fluctuations in money growth with rigid wages.

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Definitions:

Substance Use

The consumption of drugs, alcohol, or other chemicals, potentially leading to dependency or addiction.

Control Center

In physiology, a system or region that receives information and regulates vital body functions or responses, such as the brain's role in regulating temperature.

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Brain

The central organ of the nervous system in humans and other vertebrates, responsible for coordinating mind and body activities.