According to Keynesian Theory

question 90

Multiple Choice

According to Keynesian theory:

• A) the long-run and short-run aggregate supply curves are identical.
• B) a decrease in aggregate demand leads to decreases in output and prices in the short run.
• C) a decrease in aggregate demand will decrease prices but not output in the short run.
• D) the short run is relatively unimportant.

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Definitions:

Collection Float

The time between when a check is deposited into a bank and when the amount is credited, affecting cash flow management.

Canada Post

The primary postal operator in Canada, responsible for the collection, sorting, transportation, and delivery of mail and packages across the country and internationally.

Disbursement Float

The time lag between when a payment is issued by a company and when the funds are actually removed from the company’s account.

Chequing Account

A bank account that allows the holder to make deposits, withdrawals, and payments via cheques and is typically used for everyday transactions.