Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A)New classicals believe that the aggregate supply curve is a vertical line in both the short run and the long run.
• B)Both new classicals and new Keynesians believe that the aggregate supply curve is vertical in the long run.
• C)New Keynesians believe that the aggregate supply curve is vertical in the short run but not in the long run.
• D)New Keynesians believe that the aggregate supply curve slopes upward in the long run.

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Definitions:

Personal Expense

Expenses incurred by individuals for non-business-related activities, often not tax-deductible.

Goodwill Method

An accounting approach for handling goodwill during a business combination, where goodwill is not amortized but tested annually for impairment.

Capital Balances

The amounts shown in a company’s books representing the capital owned by partners or shareholders.

Profit and Loss

A financial statement, also known as an income statement, that provides a summary of a company's revenues, expenses, and profits/losses over a given period of time.