Which Theory Assumes That Business Cycles Occur Because of Changes

question 386

Multiple Choice

Which theory assumes that business cycles occur because of changes in business confidence?

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

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Definitions:

Internal Conditions

Factors or states within an organism or system that influence its functioning or status.

External Conditions

Factors outside an individual that can affect their behavior or performance.

Human Development

The interdisciplinary examination of individuals' growth and transformation throughout their lifespan, focusing on physical, mental, and socio-emotional aspects.

Change

The process or occurrence of becoming different in some particular way, without permanently losing one's identity or essence.