The Distinction Between Real and Nominal Shocks Is That

question 52

Multiple Choice

The distinction between real and nominal shocks is that

• A)real shocks directly affect only the IS curve, but not the FE line or LM curve.
• B)real shocks directly affect only the FE line, but not the LM curve.
• C)real shocks directly affect only the IS curve or the FE line, but not the LM curve.
• D)real shocks have a large direct effect on the IS curve and the FE line, but only a small direct effect on the LM curve.

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Definitions:

Month of Sale

The specific month in which a sale transaction was completed or recognized for accounting or reporting purposes.

Collections

Collections refer to the process of pursuing payments of debts owed by individuals or businesses, often conducted by dedicated departments or external agencies.

Sales

The total revenue a company generates from selling goods or services over a specific time period.

Accounts Receivable Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services provided.