An Unexpected Decrease in Aggregate Demand Will Trigger a Recession

question 18

Multiple Choice

An unexpected decrease in aggregate demand will trigger a recession in the ________ theory of the business cycle.

• A) new Keynesian cycle
• B) new classical cycle
• C) Keynesian cycle
• D) Both answers A and B are correct.

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Definitions:

Employer-paid Health Insurance

A benefit where the employer covers part or all of the health insurance premium for their employees.

Employer-paid Retirement Program

A retirement savings plan funded by the employer, contributing to an employee’s retirement benefits.