According to the Theory, a Decrease in Productivity Growth Will

question 186

Multiple Choice

According to the theory, a decrease in productivity growth will shift the _ and trigger a business cycle.

• A) real business cycle model; AD curve rightward
• B) real business cycle model; demand for loanable funds curve leftward
• C) Keynesian cycle model; SAS curve leftward
• D) Keynesian cycle model; SAS curve rightward

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Definitions:

Incorporation

The process of legally declaring a business as a corporation, allowing it to operate as a separate legal entity from its owners.

Sole Proprietorship

An individual carrying on business alone.

Partnership

When the ownership and responsibilities of a business are shared by two or more people with a view toward profit.

Incorporation Process

The series of legal steps taken to form a legally recognized company or corporation.