In the Keynesian range, the: a. Aggregate supply curve is ...

[Jkov05]

In the Keynesian range, the:
 a. Aggregate supply curve is horizontal.
  b. Aggregate demand curve is vertical.
  c. Aggregate demand curve is horizontal.
  d. Aggregate demand is downward-sloping.
  e. Aggregate supply is upward-sloping.

Question 2

Using the exact formula, the nominal interest rate equals:
 a. Real interest rate + Actual inflation + (Real interest x Actual inflation).
  b. Real interest  Expected inflation.
  c. Real interest + Expected inflation + (Real interest x Expected inflation).
  d. Real interest  Expected inflation  (Real interest x Expected inflation).

[Mholman93]

Answer to Question 1

.A

Answer to Question 2

.C