Both New Keynesian and New Classical Cycle Theories Claim That

question 58

Multiple Choice

Both new Keynesian and new classical cycle theories claim that

• A)a change in the price of oil is the major cause of a business cycle.
• B)expected changes in the quantity of money can trigger a business cycle.
• C)unexpected changes in aggregate demand trigger a business cycle.
• D)shifts in the SAS curve are the main impulse for a business cycle.
• E)animal spirits can trigger a business cycle.

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Definitions:

Mutual Expectations

Assumptions or beliefs about what individuals expect from each other in a social interaction or relationship.

Couple Therapists

Professionals who specialize in helping partners in a relationship improve their communication, resolve conflicts, and strengthen their bonds.

Desensitization Techniques

Therapeutic interventions designed to reduce or eliminate emotional response to a stimulus by repeated exposure to it.

Electroconvulsive Therapy

A psychiatric treatment involving electrically induced seizures in anesthetized patients, mainly used for severe depression.