Which Theory Distinguishes Between Expected and Unexpected Fluctuations in Aggregate

question 43

Multiple Choice

Which theory distinguishes between expected and unexpected fluctuations in aggregate demand and asserts that only unexpected changes can affect real GDP?

• A)Keynesian cycle theory
• B)Monetarist cycle theory
• C)New classical cycle theory
• D)Real business cycle theory

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Economic

Refers to the science concerned with the production, distribution, and consumption of goods and services.

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The quality of being honest or truthful in one's statements or actions.

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Principles or beliefs concerning the distinction between right and wrong or good and bad behavior.