Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A)Keynesians,like classicals,believe that people's expectations are formed based on the rational expectations hypothesis.
• B)Keynesians,like classicals,recognize the effect of productivity shocks on the business cycles.
• C)Keynesians,like classicals,believe that the free market is able to respond quickly and efficiently to the aggregate demand shocks.
• D)Keynesians,unlike classicals,believe that aggregate demand shocks are the main source of the business cycles.

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Definitions:

Operating Cash Flow

Money generated from the ordinary operations of a company.

Depreciation

The systematic allocation of an asset's cost over its expected useful life to account for its loss of value over time.

Tax Rate

The division of one's or a company's income that is allotted by the government for tax purposes.

Total Sales

This figure represents the aggregate revenue a company generates from selling its goods or services within a specific period.