Economist Brown believes that changes in aggregate demand affect only the price level, and economist Black believes that changes in aggregate demand affect only Real GDP. What does the aggregate supply (AS) curve look like for each economist?
A) For economist Brown the AS curve is vertical and for economist Black the AS curve is horizontal.
B) For economist Brown the AS curve is horizontal and for economist Black the AS curve is vertical.
C) For economist Brown the AS curve is upward sloping and for economist Black the AS curve is downward sloping.
D) For economist Brown the AS curve is downward sloping and for economist Black the AS curve is upward sloping.
A
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