Keynes suggested that the short-run aggregate supply (SRAS) curve
A) is vertical.
B) is horizontal.
C) slopes downward.
D) slopes upward.

Question

Quizplus · Accepted Answer

Keynes suggested that the short-run aggregate supply (SRAS) curve is horizontal, indicating that firms will supply whatever amount of goods is demanded at the current price level, especially under conditions of high unemployment and idle capacity.

Keynes Suggested That the Short-Run Aggregate Supply (SRAS) Curve