The quantity theory of money is a theory asserting that the quantity of money available determines the price level and the growth rate in the quantity of money determines the inflation rate.

Keynes argued that because of sticky prices and wages

A) the short-run aggregate supply curve could be horizontal. B) the short-run aggregate supply curve is probably vertical. C) the long-run aggregate supply curve slopes downward. D) the aggregate demand curve is vertical.

Income tax collections:

a. rise during a recession, thus reduce the severity of the recession. b. rise during a recession, thus increase the severity of the recession. c. fall during inflationary episodes, thus increase the severity of the inflation. d. fall during a recession, thus reducing the severity of the recession.