According to the New Keynesian Cycle Theory of the Business

question 399

Multiple Choice

According to the new Keynesian cycle theory of the business cycle, which of the following can trigger a business cycle expansion?
I. an unexpected increase in the quantity of money
II. an expected increase in the quantity of money
III. an expected increase in government expenditure

• A) I only
• B) II and III
• C) I, II and III
• D) None of the three will trigger an expansion.

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Definitions:

G₀ Phase

A phase in the cell cycle where cells are in a state of quiescence (inactivity) and not actively dividing.

Spindle Fibers

Protein structures that form during cell division, aiding in the separation of chromosomes.

Metaphase

A stage of cell division where chromosomes align themselves at the equator of the cell before being separated into each of the two daughter cells.

Telophase

The final phase of cell division, where the chromosomes move to opposite ends of the cell and two nuclei are formed.