According to the New Classical School of Thought, a Continually

question 28

Multiple Choice

According to the new classical school of thought, a continually increasing money supply causes ________.

• A) the aggregate demand curve to shift continually to the right, and the price level to increase continually
• B) the aggregate supply curve to shift continually to the right, and the price level to increase continually
• C) the long-run aggregate supply curve to shift continually to the right, and the price level to increase continually
• D) B and C only

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Accounts Payable

Liabilities of a business that represent the company's obligation to pay off a short-term debt to its creditors or suppliers.

Inventory

The complete inventory of products and materials a company possesses, meant for sale or to be used in manufacturing.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.