In the Keynesian range, the:
a. Aggregate demand curve is horizontal.
b. Aggregate supply curve is horizontal.
c. Aggregate demand curve is vertical.
d. Aggregate supply is upward-sloping.
e. Aggregate supply curve is vertical.
.B
You might also like to view...
Which of the following is not a characteristic of a perfectly competitive market structure?
A) There are restrictions on exit of firms. B) There are no restrictions to entry by new firms. C) There are a very large number of firms that are small compared to the market. D) All firms sell identical products.
Jamal earns $160,000 per year and Josephina earns $80,000 per year. If Jamal pays $16,000 in income taxes and Josephina pays $8,000 in income taxes, the income tax system would be
A) regressive. B) progressive. C) proportional. D) marginal.
A zero percent unemployment rate
A) is the only efficient unemployment rate. B) is one of the economic goals of the Canadian government. C) is not consistent with the notion of full employment. D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. E) would alleviate scarcity
The following are impediments to economic growth EXCEPT
A. dead capital. B. bureaucratic inefficiency. C. human capital development. D. lack of economic freedom.