Multiple Choice
Which business cycle theory emphasizes that, because of previously negotiated wage agreements, both expected and unexpected fluctuations in aggregate demand can change real GDP?
A) the new classical cycle theory
B) the monetarist cycle theory
C) the new Keynesian cycle theory
D) the real business cycle theory
E) the Keynesian cycle theory
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Along the short- run Phillips curve, if
Q11: Along the short- run Phillips curve, everything
Q12: Suppose the economy is in long- run
Q13: "Intertemporal substitution" in real business cycle theory
Q14: The factor leading to business cycles in
Q16: In the Keynesian business cycle theory, business
Q17: In real business cycle theory, the supply
Q18: Use the figure below to answer the
Q19: The economy starts out at a full-
Q20: According to _ theory, a decrease in