A ________ Macroeconomist Believes That Business Cycle Fluctuations Are the Efficient

question 114

Multiple Choice

A ________ macroeconomist believes that business cycle fluctuations are the efficient responses of a well-functioning market economy that is bombarded by shocks that arise from the uneven pace of technological change. A ________ macroeconomist believes that the short-run aggregate supply curve is horizontal at a fixed price level.

• A)new classical; monetarist
• B)classical; monetarist
• C)Keynesian; new Keynesian
• D)new classical; new Keynesian
• E)monetarist; new classical

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Definitions:

Variable Costing

A technique in managerial accounting where only variable production costs are charged to product units, differentiating it from absorption costing by not including fixed overhead.

Absorption Costing

A cost accounting method that includes all manufacturing costs, including both fixed and variable, in the cost of a product.

Contribution Format

A type of income statement layout that separates variable costs from fixed costs, highlighting the contribution margin.

Absorption Costing

A technique in cost accounting that incorporates all costs of production, including fixed and variable, into the valuation of inventory and cost of goods sold.