Multiple Choice
If a macroeconomic model consists of upward-sloping short-run aggregate supply and downward-sloping aggregate demand,can it possibly generate a constant real GDP with no business cycles over time?
A) No,only a vertical short-run aggregate supply curve can produce that result.
B) No,only a horizontal short-run aggregate supply curve can produce that result.
C) Yes,but the short-run aggregate supply curve must never shift.
D) Yes,if the aggregate demand and short-run aggregate supply curves shift in perfect unison.
Correct Answer:

Verified
Correct Answer:
Verified
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