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.

---

Definitions:

Deliberate Attitudes

Beliefs and feelings that are consciously held and formed through reflection and reasoning.

Dissonance

A mental struggle arising from holding conflicting attitudes and beliefs at the same time.

Hypocritical Behavior

Actions that contradict stated beliefs, values, or principles, typically involving a pretense of having virtues or moral beliefs that one does not actually possess.

Discomfort

A mild state of physical or psychological unease or distress.