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:

Behaviour

The way in which one acts or conducts oneself, especially towards others.

Global warming

The long-term rise in Earth's average surface temperature, primarily due to human activities like burning fossil fuels, which increase greenhouse gas levels in the atmosphere.

Carbon dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, heavily involved in the Earth's carbon cycle.