Multiple Choice
When the long-run aggregate supply curve is drawn as a vertical line, the theorist is assuming that
A) the economy tends to move toward full employment in the long run.
B) the economy tends to produce stable prices in the long run.
C) the economy is stagnating at a low level of growth.
D) shifting aggregate demand can change the level of employment in the long run.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: A monetary rule would make it difficult
Q66: If the Federal Reserve pursues an expansionary
Q67: One of the innovations developed by Friedman
Q68: A reduction in the interest rate causes
Q69: Explain how the Keynesians believe an increase
Q71: Why do economists who follow the classical
Q72: Which of these is an alternative to
Q73: A nominal GDP of $265 billion and
Q74: During the 2007-2009 financial crisis, both the
Q75: Which of these was NOT a factor