The Key Difference Between the New Classical Theory of the Business

question 21

Multiple Choice

The key difference between the new classical theory of the business cycle and the new Keynesian theory of the business cycle is that the new classical theory believes that ________ while the new Keynesian theory believes that ________.

• A)only unexpected changes in aggregate demand will change real GDP; only expected changes in aggregate demand will change real GDP
• B)only unexpected changes in aggregate demand will change real GDP; both expected and unexpected changes in aggregate demand will change real GDP
• C)expected changes in aggregate demand will change real GDP; expected changes in aggregate demand will not change real GDP
• D)the short- run aggregate supply curve is horizontal; the short- run aggregate supply curve is vertical

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Definitions:

Civil Rights

Rights assigned to individuals, ensuring their protection from discrimination or infringement, including freedom of speech, right to vote, and equal treatment under the law.

Suicide Precautions

Measures implemented to prevent a person from harming themselves, often used in healthcare and correctional facilities for individuals at risk of suicide.

Alcohol-Impaired State

A condition resulting from the consumption of alcohol that affects cognitive and motor functions, impairing decision-making and coordination.

Relationship Boundaries

Guidelines, rules, or limits that a person creates to identify for themselves what are reasonable, safe, and permissible ways for other people to behave around them and how they will respond when someone passes those limits.