A vertical aggregate supply curve

A. Implies that supply-side policies will have no effect on the macro equilibrium.
B. Implies that aggregate demand shifts have no impact on output.
C. Reflects the inflexibility of prices and wages.
D. Is likely in the short run.

Answer: B

Economics

You might also like to view...

When the Bretton Woods system was set up, the United States agreed initially to buy and sell gold at a price of ________ per ounce

A) $24 B) $35 C) $42 D) $48

View
Economics

What is the lowest price at which a firm produces an output? Explain why

What will be an ideal response?

View
Economics