The fixed price level that was assumed in Chapters 3 through 7 implied that
A) there is always full employment.
B) there is always less than full employment.
C) the aggregate supply curve is upward sloping to the left.
D) the aggregate supply curve is horizontal.
Correct Answer:
Verified
Q15: The AD curve will shift to the
A)right
Q16: The LM curve will shift to the
A)left
Q17: At every point to the right of
Q18: Suppose that the administration proposes to follow
Q19: Consider an initial IS-LM equilibrium in which
Q21: The SAS curve will be steeper the
A)greater
Q22: The short-run aggregate supply curve slopes upward
Q23: If labor unions negotiate an increase in
Q24: Assuming constant wages implies that
A)an increase in
Q25: Suppose the aggregate demand curve shifts rightward
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