Refer to the above figure. The classical aggregate supply curve is represented by ________ and the Keynesian short-run aggregate supply curve is represented by ________

A) curve 2; curve 1
B) curve 2; curve 3
C) curve 3; curve 4
D) curve 2; curve 4

D

Economics

You might also like to view...

In 2015, ZVX motors sold 17,241 units of their latest superbike, the ZVX-1200 . Each ZVX-1200 costs $9,763 to the company, and is sold at a price of $17,255 per unit. The total profit earned by ZVX motors in 2015 is:

a. $297,493,455. b. $129,789,523. c. $132,310,819. d. $129,769,572.

Economics

A chemical-producing firm is located just upstream from an electric power plant. Instead of the more expensive procedure of burying its wastes, the chemical-producing firm begins dumping its waste into the stream. This causes increased variable costs for the power plant, which uses water from the stream to cool its turbines. The chemical producer's dumping of waste into the stream causes

A. Only the MC of the power firm to shift downward. B. Only the MC of the chemical firm to shift upward. C. The MC of the chemical firm to shift downward and the MC of the power company to shift upward. D. The MC of the chemical firm to shift upward and the MC of the power company to shift downward.

Economics