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In Which of the Following Cases Will the AS-Curve Be

Question 30

Multiple Choice

In which of the following cases will the AS-curve be horizontal?


A) if nominal wages and prices always change proportionally, leaving real wages unchanged
B) if nominal wages do not change even if there is high unemployment
C) if nominal wages are completely flexible
D) if the economy is always in a full-employment equilibrium
E) if fiscal policy has no impact on the output level

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