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Business, 25.12.2019 00:31 GreenHerbz206

Explain the mainstream theory of the business cycle. the mainstream business cycle theory is that grows at a steady rate while grows at a fluctuating rate.

a. potential gdp; aggregate demand
b. potential gdp; short-run aggregate supply
c. aggregate demand; potential gdp
d. short-run aggregate supply; potential gdp

in mainstream business cycle theory, the money wage rate is β–Ό . if aggregate demand grows faster than potential gdp, gap emerges and if it grows more slowly than potential gdp, gap emerges.

a. neither an inflationary nor a recessionary; neither an inflationary nor a recessionary
b. a recessionary; an inflationary
c. neither an inflationary nor a recessionary; a recessionary
d. an inflationary; a recessionary

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