Author Question: The school of thought that assumes that real GDP is determined by aggregate supply, whereas the ... (Read 51 times)

Pea0909berry · **on:** Jun 30, 2018

The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____.
a. neoclassical economics
b. classical economics
c. new Keynesian economics
d. Keynesian economics
e. Marxist economics

Question 2

If the supply curve for a product is horizontal, then the elasticity of supply is:
a. equal to zero.
b. equal to one.
c. greater than one but less than infinity.
d. equal to infinity.