According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:
A. the vertical portion of the aggregate supply curve.
B. the upward sloping portion of the aggregate supply curve.
C. the horizontal portion of the aggregate supply curve.
D. either the upward sloping or the vertical portions of the aggregate supply curve.
Answer: C
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The Keynesian AS curve differs from the classical AS curve in that:
a. the classical AS curve assumes flexible nominal wages. b. the Keynesian AS curve is upward sloping. c. the Keynesian AS curve focuses on short-run behavior. d. b and c. e. all of the above.
Over the past several decades, low-productivity and high-productivity workers in the US and other countries have tended to invest in their own human capital by completing more years of college than earlier generations
Which of the following reasons does NOT help to explain this trend? A) The cost of education for low-productivity workers has declined due to the emergence of online and other nontraditional programs. B) The earnings gap between workers with and without education has grown larger over time. C) The cost of education for high-productivity workers has increased over time. D) The benefit associated with increased education has increased over time.
When did the three longest trough-to-peak expansions of the twentieth century occur?
a. between 1900 and 1930 b. between 1930 and 1960 c. since 1960 d. since 1980
Other things the same, as the price level falls, the exchange rate rises. A rise in the exchange rate leads to a decrease in net exports
a. True b. False Indicate whether the statement is true or false