A Key Difference Between the New Classical and the New

question 129

Multiple Choice

A key difference between the new classical and the new Keynesian views of the business cycle is the role played by

• A) unexpected changes in aggregate demand.
• B) government expenditure on goods and services.
• C) expected changes in aggregate demand.
• D) the growth rate of the quantity of money.

---

Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movements, low muscle tone, and vivid dreams.

Sleep Onset

The transition from wakefulness into sleep.

Minutes

A written record of the proceedings of a meeting.

REM Sleep

A stage of sleep characterized by rapid eye movements, more dreaming and bodily movement, and faster pulse and breathing.