New Classical Economists Say That an Unanticipated Decrease in Aggregate

question 242

Multiple Choice

New classical economists say that an unanticipated decrease in aggregate demand first

• A) decreases the price level and real output, and then decreases long-run aggregate supply.
• B) decreases long-run aggregate supply, and then decreases the price level and real output.
• C) reduces short-run aggregate supply, and then reduces long-run aggregate supply.
• D) decreases the price level and real output, and then increases short-run aggregate supply such that the economy returns to the full-employment level of output.

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Definitions:

Fair Value

The cost at which an asset could be sold or a liability could be settled, assuming a smooth transaction occurs between participants in the market on the date of valuation.

NCI Share

Refers to the equity interest in a subsidiary not attributable directly or indirectly to the parent company, also known as non-controlling interest.

Acquisition

An acquisition is a transaction in which one company takes over controlling interest in another company, acquiring its assets and operations to expand its own business.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, which reflects the equity stake that other investors or shareholders have in the subsidiary.