Which Statements Do Economists NOT Agree On

question 61

Multiple Choice

Which statements do economists NOT agree on?

• A) Increases in the money supply shift aggregate demand to the right.
• B) In the long run, increases in the money supply increase prices, but not output.
• C) Recessions are associated with decreases in consumption, investment, and employment.
• D) Government should use fiscal policy to try and stabilize the economy.

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Definitions:

Revenue

The income received by a company from its business activities, usually from the sale of goods and services to customers.

Expenses

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Liability

An obligation of the company that arises from past transactions or events, leading to a probable future sacrifice of economic benefits.

Internal User

individuals within an organization who use financial information to make decisions, including managers and employees.