Keynes argued that because of sticky prices and wages
A) the short-run aggregate supply curve could be horizontal.
B) the short-run aggregate supply curve is probably vertical.
C) the long-run aggregate supply curve slopes downward.
D) the aggregate demand curve is vertical.
A
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Refer to Figure 16.1. A decrease in the real price of capital goods is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ growth rate of output
A) leads to a higher B) leads to a lower C) has no long-run effect on the D) has an ambiguous effect on the
Every individual has a labor supply curve in each market where there is a possible use for his/her labor
a. True b. False