The Factor That Leads to Business Cycles in the New

question 405

Multiple Choice

The factor that leads to business cycles in the new classical cycle theory is

• A) unexpected changes in aggregate demand.
• B) the growth rate of productivity.
• C) expected changes aggregate demand.
• D) the expected future sales and profits.

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Definitions:

Market Synergy

The enhanced outcome or advantage created when two or more market entities collaborate or combine their efforts.

Strategy-making Mode

Strategy-making mode refers to the approach an organization adopts for forming and implementing strategies, which can vary from systematic planning processes to more adaptive or reactive strategies.

Entrepreneurial

Characterized by the willingness to start, manage, and assume the risks of a business or enterprise in order to make a profit.

Synergy

The cooperative interaction among groups or forces that creates an enhanced combined effect greater than the sum of their individual effects.