Multiple Choice
Which of the following statements is correct concerning the views of new Keynesians and new classicals concerning aggregate supply?
A) New classical economists believe the short-run and long-run aggregate supply curves are both vertical.
B) New Keynesian economists believe the short-run and long-run aggregate supply curves slope upward.
C) Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the long run.
D) Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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