Which Business Cycle Theory Emphasizes That, Because of Long-Term Wage

question 358

Multiple Choice

Which business cycle theory emphasizes that, because of long-term wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?

• A) the new classical cycle theory
• B) the new Keynesian cycle theory
• C) monetarist cycle theory
• D) Keynesian cycle theory

---

Definitions:

Anaerobic Respiration

A type of respiration that occurs without the presence of oxygen, using compounds other than oxygen to react with glucose to produce energy.

Aerobic Respiration

A metabolic process that uses oxygen to generate ATP by breaking down glucose and other nutrients; it occurs in the mitochondria.

ATP

Adenosine triphosphate, commonly referred to as ATP, is vital for transferring energy in cells to power metabolic functions.

Myoglobin

A red protein containing heme that carries and stores oxygen in muscle cells, very similar in structure to hemoglobin.