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Which of the Following Is Correct

Question 7

Multiple Choice

Which of the following is correct?


A) The short-run,but not the long-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
B) The long-run,but not the short-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
C) The long-run and short-run supply curves are both consistent with the idea that nominal variables affect real variables.
D) Neither the long-run nor the short-run aggregate supply curve is consistent with the idea that nominal variables affect real variables.

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