The New Classical Cycle Theory Predicts That an Unexpected Increase

question 1

Multiple Choice

The new classical cycle theory predicts that an unexpected increase in aggregate demand ________ create a business cycle and an expected increase in aggregate demand ________ create a business cycle.

• A) will; will
• B) will; will not
• C) will not; will
• D) will not; will not

---

Definitions:

Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or organizations.

Forced Ranking System

A controversial performance management system where employees are ranked against each other in categories, often leading to a certain percentage being identified as top performers, while others are deemed low performers.

Merit Pay

A compensation system where employees receive pay increases based on their performance, rewarding those who exceed expectations.

Peer Appraiser

An employee designated to assess and review the performance of their colleagues as part of a company's evaluation system.