Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)The classical aggregate AD curve can be shifted by monetary and non-monetary factors.
• B)The classical AS schedule is horizontal while the Keynesian aggregate AS schedule is vertical.
• C)The Keynesian AD curve only shifts in response to monetary factors.
• D)The classical aggregate supply schedule slopes upward to the right while the Keynesian aggregate supply schedule is vertical.
• E)none of the above are correct.

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Definitions:

Diversification

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk.

Risk-Averse Investors

Investors who prioritize minimizing risk over maximizing returns, often choosing safer, lower-yield investments.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.