Author Question: According to new Keynesian economics: a. the aggregate supply curve is horizontal at relatively low ... (Read 101 times)

kshipps · **on:** Jun 30, 2018

According to new Keynesian economics:
a. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.
b. the aggregate supply curve is negatively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output.
c. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes positively sloped, as more and more industries reach their full capacity level of output.
d. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output.
e. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.

Question 2

The Book Nook reduces prices by 20. If the dollar value of The Book Nook's sales remain constant, it indicates that:
a. the quantity of books sold remains constant.
b. the demand curve is horizontal.
c. the demand curve is vertical.
d. the quantity of books sold increases by 20.