When the AS Curve Is Vertical,fiscal Policy Will Be

question 85

Multiple Choice

When the AS curve is vertical,fiscal policy will be

• A)Ineffective against both inflation and unemployment.
• B)Effective against inflation but not unemployment.
• C)Effective against unemployment but not inflation.
• D)Effective against both inflation and unemployment.

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Definitions:

Master Budget

A comprehensive financial plan for an organization that includes all of its revenue and expense accounts, combining them into a consolidated budget.

Budgeted Sales

Projected sales figures for a given period, often used for planning and forecasting purposes within a business.

Credit Sales

Transactions where the payment for the goods or services sold is to be made at a later date.

Finished Goods Inventory

Unsold inventory of products that are ready for the market.