The Keynesian AS curve is
a. flat because of unemployed resources.
b. vertical because of full employment.
c. upward sloping.
d. downward sloping.
a. flat because of unemployed resources.
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Explain why it is difficult to determine expected real rates of interest
What will be an ideal response?
When insurance companies offer fair insurance,
A) risk-averse agents always purchase it. B) risk-neutral agents never purchase it. C) risk-loving agents always purchase it. D) nobody would purchase fair insurance.
Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is
A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2.
Refer to the graph shown. The profit-maximizing monopolist would be:
A. making zero economic profits. B. earning accounting but not economic profits. C. making economic profits. D. sustaining a loss.