The Business Cycle Impulse in the New Classical Theory of the Business

question 48

Multiple Choice

The business cycle impulse in the new classical theory of the business cycle is

• A) unexpected changes in aggregate demand.
• B) expected changes in aggregate demand.
• C) fluctuations in money growth with rigid wages.
• D) fluctuations in investment coupled with rigid wages.

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Definitions:

Dominant Strategy

In game theory, a strategy that is the best choice for a player, regardless of the strategies chosen by other players.

Simultaneous Strategy

A tactic in game theory where players make their moves or decisions at the same time without knowledge of the others' choices, influencing outcomes in competitive situations.

Positive-Sum Strategy

A situation in economic, political, or trade relations where all parties benefit, as opposed to a zero-sum game where the gain of one party is exactly balanced by the loss of another.

Terminal Nodes

The end points of a decision tree where the outcomes are listed, with no further branches.