Monetarists Believe That

question 39

Multiple Choice

Monetarists believe that:

• A)short-run problems are not likely.
• B)GDP fluctuations will be less pronounced if the Federal Reserve uses discretionary monetary policy.
• C)price fluctuations are likely in the short or long run.
• D)GDP will grow steadily if the money supply grows steadily.

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Definitions:

Gross Amount

The gross amount is the total figure before any deductions are made, such as expenses, taxes, or discounts.

Journal Entries

Recorded transactions in the accounting journals that represent the financial activities of a company, detailing debits and credits for account adjustments.

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items.

Cost Flow Assumption

An accounting principle that determines the method used to assign costs to inventory and to cost of goods sold, including FIFO, LIFO, and average cost methods.