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Since at Least the 1930s, the Mainstream of Macroeconomics

Question 34

Multiple Choice

Since at least the 1930s, the mainstream of macroeconomics

A) has attributed the sluggishness of aggregate demand - the fact that the Phillips curve has a slope - to stickiness in wages and prices.
B) has attributed the sluggishness of aggregate supply - the fact that the Phillips curve is vertical - to the flexibility of wages and prices.
C) has attributed the sluggishness of aggregate supply - the fact that the Phillips curve has a slope - to stickiness in wages and prices.
D) has attributed the sluggishness of aggregate demand - the fact that the monetary policy reaction function has a slope - to stickiness in wages and prices.

Correct Answer: