Use the figure below to answer the following question(s). Figure 11-1
Refer to Figure 11-1. Consider the short-run aggregate supply curve SRAS. What is the segment between a and b called?
A) the new classical range
B) the Keynesian range
C) the flexible wage and price range
D) the balanced budget range

Question

Use the figure below to answer the following question(s). Figure 11-1
Refer to Figure 11-1.  Consider the short-run aggregate supply curve SRAS. What is the segment between a and b called?
A) the new classical range
B) the Keynesian range
C) the flexible wage and price range
D) the balanced budget range

Quizplus · Accepted Answer

The segment between a and b on the short-run aggregate supply curve SRAS is typically referred to as the Keynesian range, where output can increase without causing a significant increase in the price level.

Use the Figure Below to Answer the Following Question(s)