Which of the Following Is True

question 72

Multiple Choice

Which of the following is true?

• A)Rational expectation theorists believe that an anticipated change in policies can alter real GDP in the short run.
• B)Rational expectation theorists believe that an unanticipated change in policies can alter real GDP in the long run.
• C)Rational expectation theorists believe that government economic policies designed to alter aggregate demand are effective at changing real output.
• D)Activists believe that appropriate economic policies can alter aggregate demand.
• E)Activists believe that economic policies cannot keep the rate of unemployment below the natural rate.

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Definitions:

Accounts Payable

Accounts payable is the amount a company owes to suppliers or vendors for goods or services received but not yet paid for, representing a short-term liability.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The revenue generated from sales of goods or services after deducting returns, allowances, and discounts.

Cash Dividends

Distributions of earnings paid to shareholders in the form of cash.