Which of the Following CORRECTLY Describes the New Classical Cycle

question 102

Multiple Choice

Which of the following CORRECTLY describes the new classical cycle theory of the business cycle?

• A) An unexpected change in the quantity of money can trigger a business cycle.
• B) An expected tax rate change can trigger a business cycle.
• C) An unexpected change in the price of oil can trigger a business cycle.
• D) Rational expectations keep the money wage from changing quickly.

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Definitions:

Buyer Bears

Indicates the scenario where the buyer is responsible for any additional costs or risks associated with a transaction, such as shipping or taxes.

Seller Receives

The net amount a seller is paid after all costs, taxes, and fees have been deducted from the gross amount received from the sale of goods or services.

Tax Levied

A core financial duty or diversely defined levy enacted on a taxpayer by a government branch to facilitate the financing of government and the wide array of public sector spending.

Seller Receives

The final amount a seller gets after transaction costs, taxes, or any deductions when a good or service is sold.