Which of the following statements is false?
A) Like Phillips curve, the long-run aggregate supply curve is a vertical line.
B) A given short-run aggregate supply curve is up-sloping, because the movement up the given supply curve shows higher prices and higher wages by the same magnitude.
C) If wage-increases are equal to price-increases, real GDP will remain unchanged.
D) If actual inflation exceeds the expected inflation and if wage-increases are less than price-increases, we will observe increases in real output in the short-run
Correct Answer:
Verified
Q55: When there is a recessionary gap, wage
Q56: When there is an inflationary gap:
A) upward
Q57: If a short-run equilibrium with a recessionary
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