Author Question: A vertical aggregate supply schedule implies that a. real wages cannot impact output. b. ... (Read 53 times)

cnetterville · **on:** Jun 30, 2018

A vertical aggregate supply schedule implies that

a. real wages cannot impact output.
b. unemployment cannot impact output.
c. aggregate demand is horizontal.
d. the price level does not impact output.

Question 2

If the economy is in a liquidity trap, then:

a. fiscal policy can still stimulate the economy through lower interest rates.
b. monetary policy cannot stimulate the economy by lowering interest rates.
c. the precautionary demand for money is falling.
d. all of the above.