Which of the Following Statements Is Correct Concerning the Views

question 47

Multiple Choice

Which of the following statements is correct concerning the views of new Keynesians and new classicals concerning aggregate supply?

• A)New classical economists believe the short-run and long-run aggregate supply curves are both vertical.
• B)New Keynesian economists believe the short-run and long-run aggregate supply curves slope upward.
• C)Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the long run.
• D)Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the short run.

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Definitions:

Buyer Payment

The act of providing money or consideration by a buyer to a seller in exchange for goods, services, or property.

Depositary Bank

A financial institution that holds assets or securities in custody for its clients, facilitating trading and safekeeping of these assets.

Payor Bank

The bank on which a check is drawn, responsible for paying the check when it is presented for payment.

Intermediary Banks

Banks that act as mediators in financial transactions between counterparties, especially in international banking when a direct transaction is not possible.