Which of the following is an accurate statement about the aggregate supply curve?
A)Keynesians view it as vertical up until full employment,at which point it becomes horizontal.
B)Monetarists view it as horizontal.
C)The consensus view is that it begins as horizontal,then starts to slope upward to the right as the economy approaches full employment,and eventually becomes vertical beyond full employment.
D)The Keynesian view is that it is vertical.

Question

Quizplus · Accepted Answer

The consensus view is that the aggregate supply curve begins as horizontal at low levels of output, then starts to slope upward to the right as the economy approaches full employment. However, beyond full employment, the curve becomes vertical as output cannot increase further due to limited resources. This view is supported by both Keynesians and monetarists. Therefore, options A, B, and D are incorrect.

Which of the Following Is an Accurate Statement About the Aggregate