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:

Liability Account

An accounting record that tracks the money owed by a business to creditors, lenders, and suppliers, part of the company's liabilities.

Direct Write-Off Method

This accounting practice writes off bad debts directly against income at the time they are determined to be uncollectible, bypassing any allowance account.

Allowance for Doubtful Accounts

This is an estimation of the amount of receivables that a company does not expect to actually collect, reflecting potential losses due to customers' inability to pay.

Uncollectible

Uncollectible refers to debts or receivables that are deemed to be impossible to collect, often resulting in a write-off by the business.