Author Question: If the aggregate supply curve is vertical, then shifts in aggregate demand will not change aggregate ... (Read 117 times)

big1devin · **on:** Jun 30, 2018

If the aggregate supply curve is vertical, then shifts in aggregate demand will not change aggregate output.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the price of wine increases, the quantity purchased will increase. Is this a positive or a normative economic statement? Explain your answer.

leannegxo · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

True

Answer to Question 2

Since it is a testable proposition, it is a positive economic statement. The statement need not be true, only testable.