Which Theory Distinguishes Between Expected and Unexpected Fluctuations in Aggregate

question 226

Multiple Choice

Which theory distinguishes between expected and unexpected fluctuations in aggregate demand and asserts that only unexpected changes can affect real GDP?

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

---

Definitions:

Hypnosis

A trance-like state of focused attention and heightened suggestibility, with diminished peripheral awareness.

Psychological Problems

Issues or disorders that affect a person's mental state and behavior, ranging from stress and anxiety to more severe conditions like depression and schizophrenia.

Medical Problems

Issues or conditions affecting an individual's health, requiring diagnosis and treatment by healthcare professionals.

Problem-focused Theory

A theory that emphasizes solving problems directly by identifying and addressing their underlying causes.