Which business cycle model is based around the concept of anticipated and unanticipated price changes?
A) The real business cycle.
B) The supply-side new classical model.
C) The demand-side Keynesian model.
D) None of these.

Question

Quizplus · Accepted Answer

The supply-side new classical model is based on the concept of anticipated and unanticipated price changes as a key driver of business cycles. The model emphasizes the role of supply shocks and rational expectations in explaining fluctuations in economic activity. The real business cycle model focuses on productivity shocks and technology changes, while the demand-side Keynesian model emphasizes the role of aggregate demand in driving output levels.

Which Business Cycle Model Is Based Around the Concept of Anticipated