Which of the Following Is a Difference in the Views

question 7

Multiple Choice

Which of the following is a difference in the views of Keynesian and classical economists?

• A)Keynesians believe that prices and wages adjust quickly, whereas the classicals believe they adjust slowly.
• B)Keynesians believe that policymakers have full knowledge about the state of an economy, whereas the classicals believe they don't.
• C)Keynesians believe that policymakers cannot offset shocks to an economy, whereas the classicals believe they can.
• D)Keynesians believe that most shocks to an economy are to long-run aggregate supply, whereas the classicals believe the shocks are to aggregate demand.

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Definitions:

Sales On Account

Sales made on credit, where the buyer is allowed to pay at a later date.

Cost Of Goods Sold

The direct expenses incurred in the production process of goods a company retails, consisting of materials and labor.

Acid-Test Ratio

A financial metric that measures the ability of a company to pay its short-term obligations with its most liquid assets.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, showing assets, liabilities, and owners' equity.