Which of the Following Is FALSE Concerning the Long Run

question 14

Multiple Choice

Which of the following is FALSE concerning the long run?

• A)Economists believe that fiscal and monetary policies have no permanent effects on the economy.
• B)Economists more or less agree that the economy tends to fluctuate around the level that is consistent with full employment.
• C)In the long run, the unemployment rate returns to its normal level.
• D)The current account must tend toward balance in the long run.
• E)None of the above.

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Definitions:

Personnel Expenses

Costs associated with the compensation and benefits of a company's employees, including wages, salaries, bonuses, and benefits.

Planning Budget

A budget created for a specific level of activity that is used for planning and coordinating operations.

Budgeting

The process of creating a plan to spend your money, outlining anticipated income and expenses over a certain period.

Activity Variance

The difference between predicted and actual costs of business activities, used to assess performance and control costs.