In the Keynesian range, the:
a. Aggregate supply curve is horizontal.
b. Aggregate demand curve is vertical.
c. Aggregate demand curve is horizontal.
d. Aggregate demand is downward-sloping.
e. Aggregate supply is upward-sloping.
.A
You might also like to view...
The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
A line that slopes downward from left to right has a positive slope.
Answer the following statement true (T) or false (F)
International trade
A. Reduces the level of income for export industries. B. Benefits the domestic industries that compete with the imported products. C. Redistributes income from import-competing industries to export industries. D. Causes prices of products to rise because of the transportation costs.
Suppose that Ron paid a scalper (a seller in the black market for tickets) $300 for a ticket to see the Rolling Stones and his true willingness to pay was $500. We can be sure that
a. the ticket scalper extracted all the possible consumer surplus from Ron b. Ron's consumer surplus was low because he paid more than face value for the ticket c. Ron's consumer surplus was the $60 face value of the ticket d. Ron's marginal-utility-to-price ratio for the concert was extremely high compared to that for other goods e. Ron enjoyed $200 of consumer surplus from the purchase