The Key Difference Between the New Classical Theory of the Business

question 246

Multiple Choice

The key difference between the new classical theory of the business cycle and the new Keynesian theory of the business cycle is that the new classical theory believes that ________ while the new Keynesian theory believes that ________.

• A) expected changes in aggregate demand will change real GDP; expected changes in aggregate demand will not change real GDP
• B) only unexpected changes in aggregate demand will change real GDP; only expected changes in aggregate demand will change real GDP
• C) only unexpected changes in aggregate demand will change real GDP; both expected and unexpected changes in aggregate demand will change real GDP
• D) the short-run aggregate supply curve is horizontal; the short-run aggregate supply curve is vertical

Understand the concept of a chart of accounts and its role in the accounting system.

Understand the functionality and application of Crystal Ball software in risk analysis and project management.

Identify and explain the processes involved in running simulations using Crystal Ball.

Define and apply the concept of critical paths in project management models.

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Definitions:

Corporate Tax Rate

The portion of a company's earnings that is handed over to the government in the form of taxes.