One Model of the Business Cycle Claims That Volatile Business

question 289

Multiple Choice

One model of the business cycle claims that volatile business confidence is the primary factor in starting a business cycle. This model is the

• A) new classical theory.
• B) aggregate supply model.
• C) Keynesian cycle theory.
• D) real business cycle model.

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Definitions:

Ethical Companies

Businesses that operate in a manner that is considered morally right, adhering to principles of fairness, honesty, and respect for individuals and the environment.

U.S. Large-Cap Index

A stock market index that measures the performance of large capitalization stocks in the United States.

Profitability

The degree to which a company or activity yields profit or financial gain, often measured over a specific period.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico to lower trade barriers and promote economic cooperation.