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

---

Definitions:

Prompt Payment

A term describing the timely processing of payment to a vendor or creditor, often governed by contractual terms or regulations to ensure payments are made within an agreed-upon timeframe.

Accounts Receivable Turnover

A financial metric used to measure how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Average Collection Period

The mean period required for a company to get payment from its clients.

Finance Charges

Fees representing the cost of credit or the cost of borrowing, including interest and transaction fees.