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:

Actuate

To put into motion or action, typically referring to the operation of a mechanical device or system.

Applied Voltage

The voltage that is applied across a component or circuit, initiating its operation or influencing its performance.

Delay Relays

Delay relays are electromechanical or solid-state devices designed to delay the activation of an electrical circuit for a specified period, used in various timing and control applications.

Operating States

The various conditions or modes in which a device or system can exist, such as on, off, standby, or fault.