In the Keynesian Business Cycle Theory, Business Cycles Begin with a Change

question 16

Multiple Choice

In the Keynesian business cycle theory, business cycles begin with a change in

• A)government expenditure.
• B)the money wage rate.
• C)business confidence.
• D)inflation expectations.
• E)monetary policy.

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Definitions:

Recency Effect

is the tendency to remember the most recently presented information best.

Personally Relevant

Pertaining directly to or having a direct impact on an individual's personal life, interests, or situations.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Chunks

In cognitive psychology, chunks refer to units of information grouped together and stored in the memory for easier recall.