The Keynesian AS-curve implies that
A) the economy is always at the full-employment level of output
B) the price level is unaffected by current levels of GDP
C) wages are perfectly flexible
D) real money balances decrease as the AD-curve shifts to the right
E) an increase in nominal money supply will not affect the level of real GDP
Correct Answer:
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Q3: The slope of the AS-curve becomes steeper
A)as
Q4: In the Keynesian aggregate supply curve case,
Q5: The level of GDP that corresponds to
Q6: The AD-AS diagram used in this chapter
A)is
Q7: Which of the following was NOT true
Q9: Which of the following is FALSE?
A)the AS-curve
Q10: Assume you mistakenly buried a $100 bill
Q11: Most economists prior to Keynes thought that
A)unemployment
Q12: In the medium run, if government purchases
Q13: Given the Keynesian AS-curve, expansionary monetary policy
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