The Activists Believe That

question 29

Multiple Choice

The activists believe that

• A)the time required for flexible prices to bring the economy back to the natural rate of unemployment is relatively short.
• B)the IS curve is relatively flat because of the broad range of assets whose demand is very sensitive to changes in the interest rate.
• C)the time required for flexible prices to return the economy to the natural level of real GDP is intolerably long.
• D)the severity of the Great Depression was primarily related to the large decline in the supply of money.

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Definitions:

Expense Capital Assets

The process of recording the cost of a capital asset as an expense over its useful life, often through depreciation or amortization.

Not-for-profit Organization

A type of organization that does not distribute its excess profits to owners or shareholders but instead uses them to help achieve its goals.

Capital Fund

A fund created for the purpose of undertaking capital projects or investing in long-term assets, funded by capital expenditures or external financing sources.

General Fund

The primary operating fund of a government, covering general operations and services not accounted for in special-purpose funds.