Which of the Following Statements Is Most Correct

question 20

Multiple Choice

Which of the following statements is most correct?

• A) Policymakers can eliminate the effects of negative supply shock.
• B) Policymakers can neutralize movements in aggregate demand.
• C) Policymakers can shift the short-run aggregate supply curve.
• D) Shifts in the monetary policy reaction function used to stabilize the economy shift the short-run aggregate supply curve.

---

Definitions:

General Journal

The general journal is a comprehensive record of financial transactions, arranged in chronological order, used in an entity's double-entry bookkeeping system.

Transaction Date

The date on which a trade or a financial transaction is completed or settled.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Credit in finance represents a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.