A price index creates a measure of how many dollars it would take to maintain a constant purchasing power over time

In the long-run, the firm can only expand output by adding more variable inputs (workers and raw materials)

a. True b. False Indicate whether the statement is true or false

In the Keynesian range, the:

a. Aggregate supply curve is vertical. b. Aggregate supply curve is horizontal. c. Aggregate demand curve is vertical. d. Aggregate demand curve is horizontal. e. Aggregate demand is downward-sloping.