Which Business Cycle Theory Claims That Increases and Decreases in the Pace

question 295

Multiple Choice

Which business cycle theory claims that increases and decreases in the pace of technological change will trigger a business cycle?

• A) the monetarist cycle model
• B) the Keynesian cycle model
• C) the new Keynesian cycle model
• D) the real business cycle model

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Definitions:

Retained Earnings

Retained earnings are the portion of a company’s profits that is kept or retained rather than being paid out as dividends to shareholders or reinvested into the business.

Closing Entries

Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.

Charters

Legal documents that establish a corporation or other organization, setting forth the name, purpose, regulations, and structure of the entity.

State Laws

The legal guidelines and regulations enacted by individual states in the United States, varying significantly from one state to another.