Business Cycle Events That Arise Solely from Aggregate Demand Shifts

question 361

Multiple Choice

Business cycle events that arise solely from aggregate demand shifts are emphasized by the

• A) monetarist and real business cycle theories.
• B) Keynesian and real business cycle theories.
• C) Keynesian and monetarist cycle theories.
• D) none of the major theories

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Definitions:

Poverty

A state or condition in which individuals or communities lack the financial resources and essentials for a minimum standard of living.

Capital-Using Technologies

Innovations that increase the efficiency of capital usage, often leading to higher productivity but possibly requiring more initial investment.

Capital-Saving Technologies

Innovations that allow for the same level of production using fewer inputs of capital, usually leading to cost savings and increased efficiency.

Demographic Transition

describes the transformation of a country’s population structure as it progresses from high birth and death rates to low birth and death rates, often as part of economic development.