Most Economists Think That the Keynesian Position Is That

question 51

Multiple Choice

Most economists think that the Keynesian position is that

• A) the wage rate will never fall and the price level will never adjust downward if the economy is in a recessionary gap.
• B) the time required before wages and prices adjust downward is short enough for the economy to be called self-regulating.
• C) the time required before wages and prices adjust downward is long enough for the economy to exist in a recessionary gap for a long time.
• D) the time required before wages and prices adjust downward if the economy is in a recessionary gap is rather long,but short enough for the economy to be considered self-regulating.

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Definitions:

Consistency

In accounting, the principle that mandates the use of the same accounting methods and practices over time for financial reporting.

Qualitative Characteristics

Aspects that contribute to the usefulness of financial information, including its relevance and reliability.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance and position at a given period.