According to New Keynesian Economics

question 69

Multiple Choice

According to new Keynesian economics:

• A)the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.
• B)the aggregate supply curve is negatively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output.
• C)the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes positively sloped, as more and more industries reach their full capacity level of output.
• D)the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output.
• E)the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.

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Definitions:

Earned Fees

Revenue generated from providing services or performing work.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the employer.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made in the previous period.