Keynesian belief that the aggregate supply curve is relatively flat in the short run means that they expect their policies to cause
A. small increases in output and much inflation.
B. small increases in output and little inflation.
C. large increases in output and little inflation.
D. large increases in output and much inflation.
Answer: C
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Consider the following:
(i) Define the term common property. Why does the use of common property create negative externalities? What do these externalities imply about the use of common property? (ii) Define the term public good. Why does the production of a public good create positive externalities? What do these externalities imply about the private market's production of public goods?
The more perfectly a monopoly can price discriminate, the
A) smaller its output and the lower its profits. B) smaller its output and the greater its profits. C) larger its output and the lower its profits. D) larger its output and the greater its profits.
Camels have been used as money. Which function of money would this type of money perform least well?
A) medium of exchange B) unit of accounting C) store of value D) standard of deferred payment
If Bank A borrows from Bank B, reserves in the banking system __________. If Bank A borrows from the Fed, reserves in the banking system __________
A) rise; fall B) fall; remain unchanged C) remain unchanged; remain unchanged D) remain unchanged; rise E) rise; remain unchanged