The model used to study business cycles is the:
A) labor model.
B) savings model.
C) growth model.
D) aggregate demand-aggregate supply model.
E) interest rate model.

Question

Quizplus · Accepted Answer

The model used to study business cycles is the aggregate demand-aggregate supply model. This model analyzes the fluctuations in the overall economic activity by examining the changes in aggregate demand and aggregate supply in the economy. It considers factors such as consumer spending, investment, government spending, and net exports to explain the variations in real GDP and inflation in the short-run.

The Model Used to Study Business Cycles Is The