Which Theory Assumes That Business Cycles Occur Because of Changes

question 386

Multiple Choice

Which theory assumes that business cycles occur because of changes in business confidence?

• A) monetarist cycle theory
• B) real business cycle theory
• C) new classical cycle theory
• D) Keynesian cycle theory

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Definitions:

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes the most fundamental human needs at the base of the pyramid, advancing to higher-level needs.

Conflicts

Disagreements or clashes between opposing parties, ideas, or interests, which can occur in various contexts such as personal, social, or professional.

Extrinsic Motivation

Involves performing an action or behavior in order to receive external rewards or avoid punishments.