The New Keynesian Cycle Theory of the Business Cycle Regards

question 320

Multiple Choice

The new Keynesian cycle theory of the business cycle regards ________ as the main source of economic fluctuations.

• A) only unexpected fluctuations in aggregate demand
• B) expected and unexpected fluctuations in aggregate demand
• C) only expected fluctuations in aggregate demand
• D) changes in business confidence

---

Definitions:

Year-End

The completion of an accounting period, typically a 12-month cycle, at which time a company prepares financial statements and closes its books.

Unearned Revenue

Unearned revenue refers to money received by a company for goods or services yet to be delivered or performed, hence recognized as a liability until the service is completed.

Financial Statements

Reports that summarize the financial activities and condition of a business or individual.

Liability

A financial obligation or amount owed by a company to creditors, employees, tax authorities, or other entities.