Author Question: The aggregate supply curve will be vertical when: a. output can be increased without an increase in ... (Read 59 times)

luminitza · **on:** Jun 30, 2018

The aggregate supply curve will be vertical when:
a. output can be increased without an increase in the price level.
b. the economy is operating at full-employment capacity.
c. output and price level rise together.
d. the aggregate demand curve is shifting to the left.
e. aggregate demand is absent.

Question 2

Assuming the economy is in a recession, Keynesian economists predict that:
a. wages will remain fixed.
b. monetary policy will sell government securities.
c. higher wages will shift the short-run aggregate supply curve leftward.
d. lower wages will shift the short-run aggregate supply curve rightward.