Which Statement Is TRUE

question 197

Multiple Choice

Which statement is TRUE?

• A) Keynes treated short-run macroeconomics as a minor issue.
• B) Keynes emphasized the short-run effects of shifts in aggregate demand on aggregate output, employment, and prices, whereas the classical economists focused on the long-run determination of the aggregate price level.
• C) The classical economists believed that the short-run aggregate supply curve was upward sloping.
• D) The classical economists emphasized the short-run effects of shifts in aggregate demand on aggregate output, whereas Keynes focused on the long-run determination of the aggregate price level.

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Definitions:

Fair Value

The income from offloading an asset or the charge for transferring a liability in a methodical exchange among participants in the market at the time of determining its value.

Orderly Transaction

A transaction executed in an organized manner where both buyer and seller have access to all pertinent information and neither is under undue pressure.

Form 10-K

An annual report required by the U.S. Securities and Exchange Commission that gives a comprehensive summary of a company's performance.

Value-Relevance

The usefulness of financial information in affecting investors' decisions, including how changes in financial statement measures (like earnings and book values) impact stock market values.