The new classical theory argues that the primary factor leading to business cycles are
A. expected changes in aggregate demand.
B. expected changes in aggregate supply.
C. unexpected changes in aggregate demand.
D. unexpected changes in aggregate supply.
Answer:C
The new classical theory argues that the primary factor leading to business cycles are
A. expected changes in aggregate demand. B. expected changes in aggregate supply. C. unexpected changes in aggregate demand. D. unexpected changes in aggregate supply.