Which of the Following Is an Accurate Statement About the Aggregate

question 95

Multiple Choice

Which of the following is an accurate statement about the aggregate supply curve?

• A)Keynesians view it as vertical up until full employment,at which point it becomes horizontal.
• B)Monetarists view it as horizontal.
• C)The consensus view is that it begins as horizontal,then starts to slope upward to the right as the economy approaches full employment,and eventually becomes vertical beyond full employment.

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Definitions:

Net Cash Inflows

The amount of cash that a company receives minus the cash it spends over a period.

Cash Payback Method

The cash payback method is a capital budgeting technique that calculates the time needed to recoup the cost of an investment based on its expected cash flows.

Period

A length of time during which a series of events or an action takes place or is completed.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often used for depreciation calculations.