Author Question: If resource prices are flexible, the long-run aggregate supply curve is vertical. a. True b. False ... (Read 87 times)

formula1 · **on:** Jun 30, 2018

If resource prices are flexible, the long-run aggregate supply curve is vertical.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A rising rate of inflation:
a. makes people more willing to hold money as an asset.
b. reduces the usefulness of money as a store of value and thus increases the velocity of money.
c. increases the usefulness of money as a medium of exchange and thus reduces the velocity of money.
d. is usually preceded by a reduction in the money supply.
e. does not have any effect on the velocity of money.