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 do is drive up the price level." The proponent of this statement assumes that the aggregate

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