According to Keynes, the aggregate supply curve is
a. vertical in both the long run and the short run.
b. vertical only in the long run.
c. vertical only in the short run.
d. never vertical.
b. vertical only in the long run.
You might also like to view...
Suppose that business firms spend $500 million on new capital equipment this year. Of this $500 million, $300 million was spent on domestically produced capital and $200 million was spent on foreign-produced capital
All else equal, these transactions contribute ________ to GDP. A) $500 million B) $300 million C) $800 million D) $200 million E) $0
Which of the following will cause a movement along the demand curve for shoes?
A) an increase in the price of socks B) an increase in income C) an increase in the price of shoes D) all of the above
Suppose electricity (E) can be produced with coal (C) or gas (G) to operate steam turbines (T). Suppose gas is more efficiently burned than coal but that they are otherwise perfect substitutes. E = min((G + .5C), T). The isoquants between gas and coal will be
a. hyperbolas b. quarter circles c. straight lines
A safety report is released that contends that sport utility vehicles are less prone to roll over during crashes than was previously thought. At the same time, the price of steel (used to produce motor vehicles) decreases. The net effect of these two incidents on the market for sport utility vehicles is a(n): a. indeterminate change in price and an increase in equilibrium quantity. b
indeterminate change in price and a decrease in equilibrium quantity. c. decrease in price and an increase in equilibrium quantity. d. increase in price and an increase in equilibrium quantity.