What does the coefficient a in the new classical expression for short-run aggregate supply represent?
A) the full employment level of output
B) the price level in the previous period
C) how much output responds when the actual price level differs from the expected price level
D) how much the price level responds when the actual level of output differs from the full employment level of output
C
Economics
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A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; decrease further B) increase; decrease C) increase; increase further D) decrease; increase
Economics
When drawn against the current wage, the current labor supply shifts to the right if
A) current taxes increase. B) future taxes decrease. C) firms make more profits. D) total factor productivity increases.
Economics