The new classical cycle theory views anticipated fluctuations in aggregate demand as the main source of business cycle economic fluctuations.
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Q385: Increases in government expenditure can create cost-push
Q386: The monetarist theory of the business cycle
Q387: The short-run Phillips curve is vertical at
Q388: An increase in the natural unemployment rate
Q389: For a persistent demand-pull inflation to occur,
Q391: The long-run Phillips curve is vertical at
Q392: The Phillips curve describes the relationship between
Q393: The short-run Phillips curve intersects the long-run
Q394: A one-time increase in aggregate demand creates
Q395: Increases in the prices of raw materials
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