Author Question: The vertical classical aggregate supply curve reflects that a. money wages adjust proportionally ... (Read 70 times)

HCHenry · **on:** Jun 30, 2018

The vertical classical aggregate supply curve reflects that

a. money wages adjust proportionally with the price level.
b. real wages are always the same.
c. aggregate output is always the same.
d. None of the above.
e. Both b and c.

Question 2

In the Keynesian aggregate expenditure graph (Figure 5-5), the 45 degree line is meant to indicate that:

a. planned aggregate expenditure always equals aggregate income.
b. savings must equal investment.
c. actual aggregate expenditure must equal aggregate income.
d. actual income must equal planned income.
e. none of the above.