In the horizontal segment of the aggregate supply curve, when ...

[jc611]

In the horizontal segment of the aggregate supply curve, when GDP:
 a. increases, the price level rises.
  b. decreases, the price level falls.
  c. increases, the price level does not change.
  d. increases, the price level falls.
  e. increases, the price level first rises and then falls.

Question 2

Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
 a. Nonintervention
  b. Fixed rule
 c. Contractionary
 d. Expansionary

[peilian]

Answer to Question 1

c

Answer to Question 2

c

[jc611]

Excellent

[komodo7]

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