The New Classical Cycle Theory Predicts That an Unexpected Increase

question 1

Multiple Choice

The new classical cycle theory predicts that an unexpected increase in aggregate demand ________ create a business cycle and an expected increase in aggregate demand ________ create a business cycle.

• A) will; will
• B) will; will not
• C) will not; will
• D) will not; will not

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Definitions:

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Doing Business

Engaging in activities that relate to the production, buying, and selling of goods or services for profit.

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Preconceived opinion or judgment towards people, groups, or subjects that is not based on reason or actual experience.

Johari Window

A psychological tool created to help people understand their interpersonal communication and relationships.