Which of the Following Is True Regarding Neoclassicists

question 64

Multiple Choice

Which of the following is true regarding Neoclassicists?

• A)They believed that wages and prices were inflexible downwards.
• B)They believed that recessionary and inflationary gaps were inevitable.
• C)They concentrated their analysis on the AS curve.
• D)They made no distinction between the short run and the long run in reference to aggregate supply.

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Definitions:

Output Levels

Refers to the specific quantities of products or services generated by a business, sector, or economy during a specified period.

Returns to Scale

The rate at which output increases in response to proportional increases in all inputs.

Production Function

An equation or graph that shows the output generated from different combinations of inputs, usually focusing on labor and capital.

Marginal Product

The increase in output that results from an additional unit of input.