The short-run aggregate supply curve in modern Keynesian analysis represents the relationship between
A) the real output of goods and services in the economy and the price level when people have fully adjusted their behavior.
B) the nominal output of goods and services and the real output of goods and services.
C) the real output of goods and services in the economy and the price level.
D) the real output of goods and services in the economy and the price level when people have not fully adjusted their behavior.
Question 2
If consumers' confidence in the economy rises
A) aggregate demand will shift rightward and the price level will rise.
B) aggregate demand will shift leftward and the price level will fall.
C) aggregate demand will shift rightward and the price level will fall.
D) aggregate demand will shift leftward and the price level will rise.
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