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Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of

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Answer : Option C is correct. According to mainstream theory of business cycle, a decrease in aggregate demand is the most common source of recession in an economy.It means that an economy has been suffer a recession when aggregate demand has been start decreasing.The most likely component of an economic recession is that investment flucation in an economy.

Answer: Option D is correct. The aggregate demand multiplier amplifier the flucations. It means that aggregate demand has been increased in the size of fixations.

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