Both New Keynesian and New Classical Cycle Theories Claim That

question 12

Multiple Choice

Both new Keynesian and new classical cycle theories claim that

• A)animal spirits can trigger a business cycle.
• B)shifts in the SAS curve are the main impulse for a business cycle.
• C)unexpected changes in aggregate demand trigger a business cycle.
• D)expected changes in the quantity of money can trigger a business cycle.
• E)a change in the price of oil is the major cause of a business cycle.

---

Definitions:

Stable

Referring to a condition or situation that is not undergoing significant change or variation and is steady or unchanging over time.

Global

Pertaining to or involving the entire world; worldwide in scope or application.

Behavioral Theories

A group of theories suggesting that behavior is learned through interactions with the environment, rather than being innate or inherited.

Depression

A mental disorder distinguished by a. long-lasting despondent mood or a disconnection from joy in usual engagements, critically impairing routine life.