Which of the Following Is the Factor the Creates Business

question 233

Multiple Choice

Which of the following is the factor the creates business cycles in the real business cycle theory?

• A) an unexpected change in aggregate demand
• B) a change by the Fed in the growth rate of the quantity of money
• C) a change in expectations about future sales and profits
• D) a change in the growth rate of productivity

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Definitions:

Business Activities

The tasks and actions that companies undertake to provide goods or services, generate revenue, and achieve their objectives.

Consumers

Individuals or organizations that use economic services or goods.

Distribution Intensity

indicates the level of market coverage aimed for a product, ranging from intensive, selective, to exclusive distribution strategies.

Exclusive

Items or services that are only available to a specific group, location, or timeframe, often implying high quality or unique status.