Consider the Following Statement: "If the Government Attempts to Raise

Multiple Choice

Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing will be to increase the price level." The statement rests on the assumption that:

A) the aggregate demand curve is a horizontal line.
B) the aggregate supply curve is a vertical line.
C) the aggregate supply curve is upward-sloping.
D) the aggregate supply curve is downward-sloping.
E) the aggregate supply curve is a horizontal line.