Multiple Choice
Which of the following is NOT a reason why real GDP can be expanded beyond a level consistent with its long-run growth path in modern Keynesian analysis?
A) In the short run, existing workers can work more hours.
B) Prices and wages are flexible, allowing for needed adjustments.
C) The existing capital stock can be used more intensively.
D) Higher prices induce firms to hire more workers.
Correct Answer:
Verified
Correct Answer:
Verified
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