The classical theory of aggregate supply where markets are ...

[eruditmonkey@yahoo.com]

The classical theory of aggregate supply where markets are perfectly flexible
 
  a. may or may not be compatible with the Keynesian system.
  b. is easily added the IS-LM framework of aggregate demand.
  c. is fundamentally incompatible with the Keynesian system.
  d. is consistent with the IS-LM framework if all shocks are to the IS curve.
  e. none of the above.

Question 2

Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment?
 
  a. Keynesians
  b. monetarists
  c. new classical
  d. real business cycle
  e. none of the above

[sarahccccc]

Answer to Question 1

C

Answer to Question 2

D