According to Mainstream Business Cycle Theory, ________ Grows at a Steady

question 30

Multiple Choice

According to mainstream business cycle theory, ________ grows at a steady rate and ________ grows at a fluctuating rate.

• A)aggregate demand; long-run aggregate supply
• B)potential GDP; aggregate demand
• C)potential GDP; short-run aggregate supply
• D)short-run aggregate supply; long-run aggregate supply
• E)short-run aggregate supply; aggregate demand

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Definitions:

Courses Of Action

Different strategies or options that can be taken in response to a specific problem or situation.

Authority Rule

The formal or legal right given to an individual or group to make decisions, pass judgments, and enforce obedience.

Minority Rule

A situation where a smaller part of a population, or a minority, holds disproportionate power or influence over decision-making processes.

Consensus

A general agreement among members of a group or a process for reaching such an agreement.