If the economy is in the vertical portion of the AS curve,what will be the effect on an increase in the price level on the level of employment?
A) There will be substantial increase in employment
B) There will be a less than proportional increase in employment
C) There will be no change in employment
D) Cannot be predicted from the information given
Correct Answer:
Verified
Q34: Keynesian economics finds fault with the classical
Q35: John Maynard Keynes
A)agreed with classical writers that
Q36: Increases in aggregate demand
A)lead to increases in
Q37: Classical economics was based upon the belief
Q38: As the maximum output level (real GDP)is
Q40: The classical theory of employment held that
A)total
Q41: If the aggregate supply curve is upward
Q42: According to the classical economists
A)a market economy
Q43: The curve showing the amount of real
Q44: The aggregate supply curve shows
A)how the cost
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents