According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
A. the horizontal portion of the aggregate supply curve.
B. the vertical portion of the aggregate supply curve.
C. the upward sloping portion of the aggregate supply curve.
D. either the horizontal or upward sloping portion of the aggregate supply curve.
Answer: B
You might also like to view...
Which one of the following statements is MOST accurate?
A) In general, consumption demand rises by less than disposable income. B) In general, consumption demand rises by more than disposable income. C) In general, consumption demand rises by more than income. D) In general, consumption demand rises by the same amount as disposable income rises. E) In general, consumption demand rises are unrelated to disposable income rises.
The demand curve is downward-sloping because of the law of ____
a. diminishing marginal utility b. diminishing consumer equilibrium c. consumer equilibrium d. diminishing utility maximization