Which of the following is the factor that leads to business cycles in the new classical business cycle theory?

A. a change in the growth rate of productivity
B. a change by the Fed in the growth rate of the quantity of money 
C. a change in business confidence 
D. an unexpected change in aggregate demand

Answer: D. an unexpected change in aggregate demand

Economics

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Explain the difference between adverse selection and moral hazard?

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Refer to the graph shown. No changes in fiscal policy are advisable when the economy is at point:

A. A. B. B. C. C. D. D.

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