Register
A new Classical view is that business cycle fluctuations are the​ _____ responses of a​ well-functioning market economy that is bombarded by shocks that arise from the uneven pace of​ _____.
221k views
0 votes
A new Classical view is that business cycle fluctuations are the​ _____ responses of a​ well-functioning market economy that is bombarded by shocks that arise from the uneven pace of​ _____.

User Yogesh Lakhotia
by
2.9k points

1 Answer

1 vote

Answer:

The correct words for the blank spaces are: efficient; technological change.

Step-by-step explanation:

The New Classical school of Economics was originated at the beginning of the 1970s having as its main characters to American economists Robert Lucas (born in 1937) and Edward Prescott (born in 1940). New classicals pay special attention to economic models based on individuals' behaviors, indicating they pursue to maximize their utility by making rational decisions.

When it comes to business cycles, they proposed fluctuations in the economy were boosted by unanticipated "shocks". Changes in aggregate demand were the result of unexpected monetary or fiscal policies. Changes in aggregate supply were caused by efficient changes in productivity as a result of temporary changes in technology.

User Sir Montes
by
3.1k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.4m questions

4.3m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match
Link Copied!