The aggregate supply curve will be vertical when: a. output can ...

[luminitza]

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.

[xiazhe]

Answer to Question 1

b

Answer to Question 2

a

[luminitza]

Excellent

[EAN94]

Thanks for the timely response, appreciate it