Which one of the following statements is TRUE?
A. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that there is no correlation between the level of real GDP and the employment level.
B. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that domestic workers are harmed by imports.
C. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand will increase the price level, but will leave real GDP unaffected in the short term.
D. The shape of the Keynesian short-run aggregate supply curve is based on the conclusion that increases in aggregate demand can boost output in the short term.
Answer: D
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Which of the following is an example of a quasi-public good?
A) stock of knowledge in the public domain B) crime prevention C) cable television D) organic apples
If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.
As the marginal propensity to consume (MPC) decreases, the spending multiplier:
A. increases. B. decreases. C. remains constant. D. becomes undefinable.
In a market system, relative scarcities of resources are indicated by
A. surpluses. B. relative market prices. C. supply and demand being out of equilibrium. D. excess demand and excess supply.