Both New Keynesian and New Classical Cycle Theories Claim That

question 8

Multiple Choice

Both new Keynesian and new classical cycle theories claim that __________.

• A) expected changes in the quantity of money can trigger a business cycle
• B) unexpected changes in aggregate demand trigger a business cycle
• C) shifts in the SAS curve are the main impulse for a business cycle
• D) animal spirits can trigger a business cycle

---

Definitions:

Strange Situation

A procedure developed in psychology to observe attachment relationships between a caregiver and child.

Mary Ainsworth

A developmental psychologist best known for her work on attachment theory, including the Strange Situation Procedure to assess infant attachment styles.

Self-fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.

Labeling

The act of identifying or describing someone or something in a specific way, often simplifying complex individuals or ideas into single terms or categories.