Which Business Cycle Theory Emphasizes That, Because of Long-Term Wage

question 316

Multiple Choice

Which business cycle theory emphasizes that, because of long-term wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?

• A) Keynesian cycle theory
• B) the new classical cycle theory
• C) the new Keynesian cycle theory
• D) monetarist cycle theory

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Definitions:

Hyperalgesia

An increased sensitivity to pain, which can be caused by damage to nociceptors or peripheral nerves.

Hyperactivity

A condition marked by excessive movement, impulsiveness, and difficulty in maintaining attention, often seen in ADHD.

Hypoactivity

Reduced activity or underperformance in certain areas or systems of the body or brain.

Hyperalgesia Response

Heightened pain sensitivity resulting from damage to pain receptors or the peripheral nervous system.