On a Keynesian-style aggregate supply curve,expansionary fiscal and monetary policies result in increases in real GDP,employment,and the price level when the economy operates in the ________ range.
A) horizontal
B) coincident
C) intermediate
D) vertical
E) optimal

Question

Quizplus · Accepted Answer

In the intermediate range of the Keynesian aggregate supply curve, the economy experiences increases in real GDP, employment, and the price level due to expansionary fiscal and monetary policies. This range reflects some upward slope, indicating that output and prices can rise together.

On a Keynesian-Style Aggregate Supply Curve,expansionary Fiscal and Monetary Policies