The figure given below shows the supply curves with different slopes.?Figure 15.1

-Refer to Figure 15.1. Which of the following supply curves represent the supply curve in the simple Keynesian model?
A) S₁
B) S₂
C) S₃
D) S₄
E) S₅

Question

The figure given below shows the supply curves with different slopes.?Figure 15.1
 
-Refer to Figure 15.1. Which of the following supply curves represent the supply curve in the simple Keynesian model?
A) S₁ 
B) S₂ 
C) S₃ 
D) S₄ 
E) S₅

Quizplus · Accepted Answer

In the simple Keynesian model, the supply curve is perfectly elastic at a certain level of output, reflecting the idea that firms will supply any amount of goods at a given price level up to full employment output. This is represented by a horizontal line, which matches the description of S₂.

The Figure Given Below Shows the Supply Curves with Different