If Business Cycles Are Caused by Changes in Aggregate Demand,you

question 16

Multiple Choice

If business cycles are caused by changes in aggregate demand,you would expect to see

• A)prices and unemployment moving in the same direction.
• B)price and unemployment moving in opposite directions.
• C)prices not moving with unemployment.
• D)unemployment is not included in the Keynesian model.

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Definitions:

Operating Cash Flow

A measure of the cash generated or used by a company in its business operations, reflecting the entity's financial health.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how earnings are affected by sales fluctuations.

Quantity Sold

The total number of units of a product or service that have been sold during a specific period of time.

Marginal Costs

The added cost of producing one additional unit of production.