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 unexpected change in the price of oil can trigger a business cycle.
D) Rational expectations keep the money wage from changing quickly.
Correct Answer:
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Q49: The factor leading to business cycles in
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Q52: The new Keynesian cycle theory of the
Q53: According to the new classical theory, _
Q55: The key difference between the new classical
Q56: Which business cycle theory emphasizes that, because
Q57: Which theory distinguishes between expected and unexpected
Q58: In the new Keynesian business cycle theory,
Q59: One assumption of the new classical model
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