Suppose the Data Show That an Unexpected Change in Tax

question 384

Multiple Choice

Suppose the data show that an unexpected change in tax rates caused a recent recession. These data support which model of the business cycle?

• A) new classical cycle theory
• B) new Keynesian cycle theory
• C) real business cycle theory
• D) Both answers A and B are correct.

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Definitions:

Existential

Pertaining to a philosophical approach that emphasizes individual freedom, choice, and responsibility in creating meaning in life.

Modeling

A psychological technique involving the demonstration of behaviors for another individual to observe and potentially imitate.

Operant Conditioning

A learning process wherein the strength of a behavior is modified by reinforcement or punishment.

Self-actualization

A process of realizing and fulfilling one's potential and abilities, considered the pinnacle of psychological development.