The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
a. horizontal at the full-employment level of real GDP.
b. positively sloped at the full-employment level of real GDP.
c. vertical at the full-employment level of real GDP.
d. backward bending at the full-employment level of real GDP.
c
You might also like to view...
Which of the following will cause the consumption schedule to shift upward?
a) an increase in the amount of consumer indebtedness b) a reduction in the wealth or assets held by consumers c) an expectation in future declines in the consumer price index d) an expectation of future shortages of essential consumer goods e) a growing belief that personal income will decline in the future
Which of the following describes the growth in real GDP per person in the United States from 1900 to the present?
A) It has doubled. B) It has decreased. C) It has increased by more than eight times. D) It has increased twenty times.