The Factor That Leads to Business Cycles Within Keynesian Cycle

question 107

Multiple Choice

The factor that leads to business cycles within Keynesian cycle theory is

• A) the growth rate in the quantity of money.
• B) fluctuations in business confidence.
• C) adverse shocks to international trade.
• D) the growth rate in labor productivity.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time; the lowest level at which an individual can experience a sensation.

Difference Threshold

The smallest change in sensation that can be perceived half the time by an individual, also referred to as the just noticeable difference (JND).

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision.

Signal Detection Theory

An approach to evaluate the capability of identifying information-carrying patterns from random ones that interfere with the information.