Which of the Following CORRECTLY Describes the New Classical Cycle

question 102

Multiple Choice

Which of the following CORRECTLY describes the new classical cycle theory of the business cycle?

• A) An unexpected change in the quantity of money can trigger a business cycle.
• B) An expected tax rate change can trigger a business cycle.
• C) An unexpected change in the price of oil can trigger a business cycle.
• D) Rational expectations keep the money wage from changing quickly.

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Definitions:

Existence

The state or fact of living or being present.

Biosphere Reserve

Areas designated under UNESCO's Man and the Biosphere Programme to promote sustainable development by balancing conservation and the use of natural resources.

Mantle

The region of the Earth's interior between the crust and the core, characterized by its solid, silicate rock composition.

Buffer Zone

An area designated to separate or protect different areas or to minimize the impact of disturbances from one area to another.