Suppose that forecasters have incorrectly estimated aggregate demand.According to the ________,this mistake could trigger a business cycle.
A) Keynesian cycle model
B) the monetarist cycle model
C) the new classical cycle model
D) the real business cycle model

Question

Quizplus · Accepted Answer

The new classical cycle model suggests that incorrect estimates of aggregate demand can lead to changes in price expectations and ultimately, fluctuations in the economy known as business cycles.

Suppose That Forecasters Have Incorrectly Estimated Aggregate Demand