Keynesian Belief That the Aggregate Supply Curve Is Relatively Flat

question 199

Multiple Choice

Keynesian belief that the aggregate supply curve is relatively flat in the short run means that they expect their policies to cause

• A)small increases in output and much inflation.
• B)small increases in output and little inflation.
• C)large increases in output and little inflation.
• D)large increases in output and much inflation.

---

Definitions:

Accounts Written Off

This refers to the process where businesses remove uncollectible accounts receivable from their accounting records because payment is no longer expected.

Note Dishonored

A promissory note that has not been paid by the issuer at maturity.

Allowance for Doubtful Accounts

An accounting provision made for accounts receivable that might not be collected, representing a business's estimate of noncollectable amounts.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services provided on credit.