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The Keynesian Short-Run Aggregate Supply Curve in the Simplified Keynesian

Question 173

Multiple Choice

The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because


A) a vertical curve does not make economic sense.
B) prices and wages will never decrease.
C) the classical model is better in explaining how the economy operates.
D) some price adjustments do take place in the short run.

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