Which of the following never assumes, either implicitly or explicitly, independence between nominal and real variables?
A) the AS curve
B) the Phillips curve
C) Okun's law
D) the classical dichotomy
E) none of the above
C
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Which of the following is TRUE?
A) Points along the aggregate supply curve show the equilibrium levels of output and prices that are consistent on the demand side of the economy. B) Points along the aggregate demand curve show the equilibrium levels of output and prices that are consistent on the supply side of the economy. C) Aggregate demand shows the levels of GDP and prices where expenditure decisions and production decisions match. D) Aggregate supply shows the levels of GDP and prices where expenditure decisions and production decisions match.
A decrease in demand could be caused by a. an increase in price
b. a decrease in the price of a complement. c. a technological advance. d. a decrease in the price of a substitute.