Which of the following will result in secular deflation?
A) a one-time rightward shift of the long-run aggregate supply curve
B) continuous rightward shifts of the aggregate demand curve
C) continuous rightward shifts of the long-run aggregate supply curve
D) a one-time rightward shift of the aggregate demand curve
Question 2
The Keynesian contention that the short-run aggregate supply curve is horizontal is based on the assumption that there are
A) flexible prices. B) real prices.
C) upward sloping prices. D) sticky prices.
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