Business Cycle flUctuations Typically Arise Because

question 137

Multiple Choice

Business cycle fluctuations typically arise because

• A) the actual supply of goods and services ends up being more or less than what consumers were expecting.
• B) the actual demand for goods and services ends up being more or less than the expected supply of goods and services.
• C) the actual demand for goods and services ends up being more or less than what firms were expecting.
• D) prices tend to be flexible in the short run.

---

Definitions:

Nazi Party

A political group in Germany, led by Adolf Hitler from 1920 to 1945, that promoted totalitarian government and racial superiority ideologies.

Hierarchy of Human Needs

A theory proposed by Abraham Maslow suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Motivating Behavior

The driving force behind actions driven by needs, desires, and goals.