Author Question: The horizontal short-run aggregate supply curve A) assumes that wages and all other input prices ... (Read 121 times)

Jipu 123 · **on:** Jun 30, 2018

The horizontal short-run aggregate supply curve

A) assumes that wages and all other input prices are constant.
B) assumes that opportunity cost is constant.
C) shows that real GDP can be increased only when prices increase.
D) assumes that there is full employment in the economy.

Question 2

A ________ in the long-run real interest rate ________ household's demand for durable goods.

A) fall; increases B) rise; increases
C) rise; does not affect D) fall; lowers