Suppose That Managers Forecasted a Large Decline in Expected Sales

question 138

Multiple Choice

Suppose that managers forecasted a large decline in expected sales and profits and so their confidence plummets. According to the ________, this forecast might start a business cycle.

• A) Keynesian cycle theory
• B) circular flow theory
• C) monetarist cycle theory
• D) new classical cycle theory

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Definitions:

Alienated

The feeling of being estranged or disconnected from others, society, or oneself, often resulting in isolation and a loss of identity or meaning.

Adam Smith

A Scottish economist and philosopher, best known for his theories on free market economics and the ‘invisible hand’ concept.

Peasants

Historically, members of the lower social class in rural areas, typically farmers who own or rent small plots of land for cultivation.

Legitimate Power

Authority that is recognized and accepted by others within an organizational or social structure, often derived from an official position or role.