Author Question: An economist from which of the following schools of thought would most likely say - An increase in ... (Read 44 times)

stock · **on:** Jun 30, 2018

An economist from which of the following schools of thought would most likely say - An increase in government expenditure will only increase inflation, because the aggregate supply curve is vertical?
a. Neoclassical economics
b. Traditional classical economics
c. New Keynesian economics
d. Keynesian economics
e. Marxist economics

Question 2

If price increases 6 and the quantity exchanged decreases 6, what does that tell us about the elasticity of supply?
a. It tells us nothing about the elasticity of supply.
b. Supply is elastic.
c. Supply is inelastic.
d. Supply is unit elastic.