The Classical Macroeconomic Model Proposes That

question 73

Multiple Choice

The Classical macroeconomic model proposes that

• A)government intervention is required to help the economy reach its potential.
• B)real GDP equals potential GDP as long as inflation equals zero.
• C)changes in the quantity of money are critical in driving economic growth.
• D)markets work efficiently to produce the best macroeconomic outcomes.
• E)socialism produces the most efficient economic outcomes for a society.

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Definitions:

Average Collection Period (ACP)

A financial metric that measures the average number of days it takes for a company to collect payments from its credit sales.

Sales Projection

An estimate of the future sales figures of a product or service, based on market research, historical data, and other predictive techniques.

Accounts Receivable

Unsettled payments from clients to a company for goods or services that have been offered but not yet paid for.

Average Collection Period (ACP)

The average amount of time it takes for a business to receive payments owed by its customers.