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The Flat Region of the Aggregate Supply Curve Reflects the Keynesian

Question 47

Multiple Choice

The flat region of the aggregate supply curve reflects the Keynesian belief that:


A) both inflation and unemployment does not exist.
B) high growth rate of money supply poses problems in the economy.
C) unemployment is usually experienced amidst high real GDP.
D) government intervention in the economy aggravates the problems of inflation and unemployment.
E) inflation is not a problem when unemployment is high.

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