The New Classical Theory Argues That the Primary Factor Leading

question 93

Multiple Choice

The new classical theory argues that the primary factor leading to business cycles is

• A)unexpected fluctuations in short- run aggregate supply.
• B)expected fluctuations in aggregate demand.
• C)unexpected fluctuations in long- run aggregate supply.
• D)unexpected fluctuations in aggregate demand.
• E)expected fluctuations in short- run aggregate supply.

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Definitions:

Rental Property

A property owned by an individual or entity that is rented out to tenants in exchange for monthly rent payments.

Section 1245

A provision in the U.S. tax code that treats the gain from the sale of certain types of property (primarily depreciable personal property) as ordinary income rather than capital gain.

Ordinary Income

Income earned through wages, salaries, commissions, and interest, subject to standard tax rates.

Preferential Treatment

Practices or policies that give favorable tax treatment to certain transactions, investments, or income, often to encourage specific economic activities.