Multiple Choice
The short-run aggregate supply curve is horizontal when
A) prices are inflexible and the economy is at full employment.
B) there are unemployed resources and prices do not increase when aggregate demand increases.
C) there are unemployed resources and prices do not decrease when aggregate supply increases.
D) there are no unemployed resources and prices do not increase when aggregate demand or supply increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q134: Inflation that is caused solely by an
Q135: In the short run, if the price
Q136: In the classical model, an increase in
Q137: Suppose the euro appreciates against the dollar.
Q138: The aggregate supply curve in the classical
Q140: Given the assumptions of the classical model<br>A)
Q141: What is the underlying assumption of the
Q142: In the classical model, the interest rate
Q143: According to the above figure, what will
Q144: According to the classical economists, an economy