A change in government purchases has the greatest effect on the economy in the short run when _____.
a. the aggregate demand curve is relatively flat
b. the aggregate demand curve is relatively steep.
c. the short-run aggregate supply curve is relatively flat.
d. the aggregate demand curve is vertical.
e. the short-run aggregate supply curve is vertical.
c
You might also like to view...
In a centrally planned economy, the government decides how economic resources will be allocated
Indicate whether the statement is true or false
A "mixed strategy" equilibrium means that
A) the strategies chosen by the players represent different behaviors. B) one player has a dominant strategy, and one does not. C) one player has a pure strategy, and one does not. D) the equilibrium strategy is an assignment of probabilities to pure strategies. E) the equilibrium strategy involves alternating between a dominant strategy and a Nash strategy.