At low levels of employment,the Keynesian aggregate supply curve:
A) tilts downward to the right.
B) tilts upward to the right.
C) is vertical.
D) shows a constant price level.
E) shows a rising price level.

Question

Quizplus · Accepted Answer

At low levels of employment, the Keynesian aggregate supply curve is horizontal, indicating a constant price level because there is enough spare capacity in the economy to increase output without increasing prices.

At Low Levels of Employment,the Keynesian Aggregate Supply Curve