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:

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.

Occipital Lobes

Lobes at the lower back part of the brain’s cerebral cortex; they contain areas that receive visual information.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production.

Speech-Production

The complex process involving the coordination of mental and physical activities to produce spoken language.