In Theory

question 62

Multiple Choice

In theory,

• A)managers are hired by the shareholders at the annual stockholders meeting.If the managers turn in a bad year,new ones get hired.
• B)shareholders hire the managers to oversee the board of directors.
• C)managers are hired by the board of directors; the board is accountable to the shareholders.
• D)none of the options

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given time and price level.

Classical Economists

were early economic thinkers of the 18th and 19th centuries who believed in the power of free markets to regulate themselves through the laws of supply and demand.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by widespread unemployment, deflation, and a significant decline in economic activity.

Full Employment

An economic scenario where every available workforce is employed in the most financially efficient method.