Both New Keynesian and New Classical Cycle Theories Claim That

question 403

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.

---

Definitions:

Cost-Based Pricing

Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.

Personal Selling

A direct form of marketing that involves a salesperson presenting the benefits of a product directly to a customer in order to make a sale.

Price Fixing

An illegal practice where businesses agree on the prices of their products or services, instead of letting market forces determine them.

Odd Pricing

A pricing strategy that sets prices at figures ending in odd numbers, like $4.99, under the belief that they seem lower to consumers.