Which Business Cycle Theory Emphasizes That, Because of Previously Negotiated

question 91

Multiple Choice

Which business cycle theory emphasizes that, because of previously negotiated wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?

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

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Definitions:

Future Cash Flows

The projected cash receipts and payments a business expects over a period in the future, important for investment and valuation purposes.

Net Income

Profit of a company after all expenses and taxes have been subtracted from total revenue.

Matching Principle

An accounting principle that dictates that expenses should be recognized in the period in which the related revenues are earned, helping to ensure that financial statements are accurate.

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.