Which of the Following Statements Is Correct

question 31

Multiple Choice

Which of the following statements is correct?

• A)In both the Keynesian and classical systems,aggregate demand is an important determinant of output and employment
• B)In classical and monetarist models,money is the primary factor determining changes in aggregate demand.
• C)Aggregate demand in the Keynesian model is determined entirely by the quantity of money,whereas in the classical model,money is one of several factors determining aggregate demand
• D)None of the above

---

Definitions:

Average Fixed Costs

The total fixed costs of production divided by the total quantity of output produced, illustrating how fixed costs spread over units as output increases.

Average Total Cost

The total cost of producing a specific quantity of a good or service divided by the quantity produced, representing the per-unit cost of production.

Marginal Cost

The extra expense incurred from the production of an additional unit of a product or service.