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An Aggregate Supply Schedule Drawn to Be Consistent with No

Question 16

Multiple Choice

An aggregate supply schedule drawn to be consistent with no trade-off between inflation and unemployment would


A) be horizontal at some price level determined by aggregate demand.
B) be horizontal at some price level determined by interest rates and government policy.
C) be vertical above an arbitrary level of GDP.
D) be vertical above a level of GDP determined by the capital stock, availability of labor, and technology embodied in production across the economy.
E) slope upward to some degree to reflect the influences of financial factors on demand.

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