Which of the Following Statements Best Characterizes the Classical View

question 5

Multiple Choice

Which of the following statements best characterizes the Classical view of business cycles?

• A)Fluctuations in business activity occur in regular and predictable patterns.
• B)Fluctuations in business activity are to be expected and should be accepted.
• C)Business cycles are symptoms of underlying problems and should be addressed by macroeconomic policy.
• D)The appropriate macroeconomic policy can eliminate fluctuations in business activity.

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Definitions:

Acetylcholine

A neurotransmitter involved in many functions, including muscle contraction and the modulation of alertness, memory, and learning.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Neurons

Specialized cells within the nervous system responsible for conveying information to other nerve cells, muscles, or glands.

Autonomic Nervous System

The part of the peripheral nervous system that controls the glands and the muscles of the internal organs (such as the heart). Its sympathetic division arouses; its parasympathetic division calms.