Which of the following correctly describes the new classical cycle theory of the business cycle?
A) An unexpected change in the quantity of money can trigger a business cycle.
B) An expected tax rate change can trigger a business cycle.
C) An expected change in the level of exports can trigger a business cycle.
D) Rational expectations keep the money wage from changing quickly.

Question

Quizplus · Accepted Answer

The Answer of Which of the following correctly describes the new classical cycle theory of the business cycle?
A) An unexpected change in the quantity of money can trigger a business cycle.
B) An expected tax rate change can trigger a business cycle.
C) An expected change in the level of exports can trigger a business cycle.
D) Rational expectations keep the money wage from changing quickly.

Which of the Following Correctly Describes the New Classical Cycle