The short-run aggregate supply curve is upward sloping in part because increases in aggregate demand cause some firms to increase their price markups.
Correct Answer:
Verified
Q5: After the 2008 expansionary policy, unemployment remained
Q6: According to Keynes, why might deflation create
Q7: In the AS/AD model, as the price
Q8: Some economists believe that the good times
Q9: If productivity and wages both rise by
Q11: Potential income is that level of income
Q12: Equilibrium income is that level of income:
A)which
Q13: Keynes believed the economy was:
A)fluctuating around potential
Q14: Keynes believed equilibrium income was:
A)not fixed at
Q15: Starting from a long-run equilibrium, an increase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents