The __________Cycle Theory States That Only Unexpected Fluctuations in Aggregate

question 307

Multiple Choice

The __________cycle theory states that only unexpected fluctuations in aggregate demand are the main source of business cycles.

• A) new Keynesian
• B) Keynesian
• C) monetarist
• D) new classical

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Definitions:

Inelastic Demand

A situation in which the demand for a product does not significantly change in response to a change in price.

Cigarette-Tax Revenues

The money collected by governments through the taxation of cigarettes and tobacco products, often used to fund public health initiatives.

Addictive

Having qualities that lead to an increased compulsion to use or engage with a substance, activity, or behavior despite potential harm.

Price-Inelastic

Describes a situation where the demand for a good or service does not significantly change with a change in its price.