A Larger Than Expected Increase in Aggregate Demand Will Lead

question 54

Multiple Choice

A larger than expected increase in aggregate demand will lead to __________in the __________of the business cycle.

• A) an expansion; real business cycle theory
• B) a recession; new Keynesian cycle theory
• C) a recession; Keynesian cycle theory
• D) an expansion; new classical cycle theory

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Definitions:

Formally Adopted

Officially accepted or enacted through proper legal or administrative procedures.

Union

An organization formed by workers in various sectors to protect and advance their rights, interests, and working conditions.

Discriminated Against

Unfair or unequal treatment of an individual or group based on certain characteristics such as race, gender, age, or sexual orientation.

Judicial Review

The power of courts to assess the constitutionality of laws and actions of the executive and legislative branches.