Business Cycles Will Occur If Either of the Two Theories

question 118

Multiple Choice

Business cycles will occur if either of the two theories below characterizes the behavior of the economy:

• A)the classical or the Keynesian theories of aggregate demand.
• B)the classical or the real balance theory.
• C)deflation impotence or rigid nominal wages.
• D)A and C.

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Definitions:

Small Business

An independent business with fewer employees and less annual revenue than a corporation or larger company, playing a significant role in most economies.

Stumbling Block

An obstacle or hindrance that prevents progress.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business or enterprise.

Run Out of Money

The situation where an individual or business exhausts their financial resources, rendering them unable to cover expenses.