The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of:

Suppose that the rate of interest increases. What will happen to the discounted present value of an investment?

a. It will increase. b. It will decrease. c. It will remain unchanged. d. It depends on the magnitude of the change.

The unemployment rate:

a. Always rises when the employment rate rises. b. Has more reliable components (in terms of measurability) than the employment rate. c. Is considered to be a poorer measure of business cycle activity than the employment rate. d. Tends to be more stable than the employment rate. e. None of the above.