Multiple Choice
Both new Keynesian and new classical cycle theories claim that
A) animal spirits can trigger a business cycle.
B) shifts in the SAS curve are the main impulse for a business cycle.
C) unexpected changes in aggregate demand trigger a business cycle.
D) expected changes in the quantity of money can trigger a business cycle.
E) a change in the price of oil is the major cause of a business cycle.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Use the figure below to answer the
Q8: In real business cycle theory, a decrease
Q9: Use the table below to answer the
Q10: Deflation occurs when<br>A)aggregate demand increases at a
Q11: Suppose that the business cycle in Canada
Q13: If there is a fully anticipated increase
Q14: According to real business cycle theory, an
Q15: According to real business cycle theory, if
Q16: When the price level is rising and,
Q17: Use the figure below to answer the