Which of the Following Schools of Thought Believe That Expansionary

question 43

Multiple Choice

Which of the following schools of thought believe that expansionary monetary policy affects only prices, not output?
I. classical macroeconomics
II. Great Moderation consensus

• A)I only
• B)II only
• C)I and II
• D)Neither I nor II

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Definitions:

Accruals

Accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Unrecorded Expense

A cost or liability that has been incurred but not yet documented or included in the financial records or statements of a company.

Unrecorded Revenue

Earnings from completed transactions or delivered goods/services that have not yet been documented in the financial accounts.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.