According to the ________ Theory, Technological Change Can Be So

question 176

Multiple Choice

According to the ________ theory, technological change can be so rapid that some existing capital becomes obsolete and ________.

• A) real business cycle; aggregate demand increases
• B) new classical; productivity falls
• C) new classical; aggregate demand increases
• D) real business cycle; productivity falls

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Definitions:

Cost Conditions

The factors that determine the expenses involved in production, including material, labor, and overhead costs.

Profit-Maximizing

The process or strategy aimed at achieving the highest possible profit from a business operation, by adjusting to optimal production levels and pricing strategies.

Market Price

Market price is the current price at which a good or service can be bought or sold, determined by the intersection of supply and demand in a market.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.