Multiple Choice
What is TRUE of the aggregate supply curve in the classical model?
A) The aggregate supply curve is downward sloping.
B) The aggregate supply curve is horizontal.
C) The aggregate supply curve is vertical.
D) The aggregate supply curve is not determined by the level of employment.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: The classical economists argued that planned saving
Q20: According to the classical economists, actual real
Q21: "Supply creates its own demand" is known
Q22: The net effect of a stronger dollar
Q23: Suppose that last year $1 U.S. exchanged
Q25: One key assumption of the classical model
Q26: The implication of Say's law is that<br>A)
Q27: According to the circular flow of income
Q28: Say's law implies that<br>A) consumers' willingness to
Q29: Cost-push inflation is<br>A) inflation caused by increases