Which One of the Following Statements Is True

question 198

Multiple Choice

Which one of the following statements is true?

• A) The classical model cannot explain periods of prolonged unemployment.
• B) The Keynesian model cannot explain periods of prolonged unemployment.
• C) The Keynesian model assumes complete flexibility of wages and prices.
• D) The Keynesian model shows that the level of real GDP is supply-determined.

---

Definitions:

Batch Size

The amount of production in units of product that is produced after a setup.

Prevention Costs

Expenses incurred to avoid or minimize the number of defects in products before they reach the customer.

Appraisal Costs

Costs associated with measuring and monitoring activities to ensure quality or compliance with standards, typically including testing and inspections.

Non-Value-Added Activities

Operations or tasks that consume resources or time but do not add any value to the product or service from the customer's perspective.