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:

Cost Price Approach

An approach to transfer pricing that uses cost as the basis for setting the transfer price.

Transfer Pricing

Transfer Pricing refers to the setting of prices for transactions between associated enterprises within a multi-entity corporate structure for goods, services, or intellectual property.

Responsibility Centers

Organizational units within a company that are managed and evaluated separately, focusing on achieving specific financial and operational goals.

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.