Which of the following statements is correct?
a. The classical aggregate AD curve can be shifted by monetary and non-monetary factors.
b. The classical AS schedule is horizontal while the Keynesian aggregate AS schedule is vertical.
c. The Keynesian AD curve only shifts in response to monetary factors.
d. The classical aggregate supply schedule slopes upward to the right while the Keynesian aggregate supply schedule is vertical.
e. none of the above are correct.
E
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If government spending does not change, an increase in the government deficit leads to
A) an increase in current consumption. B) a decrease in current consumption. C) no change in current consumption. D) it depends on the marginal propensity to consume.
The total civilian labor force is comprised of
A) the unemployed and the employed. B) only the employed. C) all individuals over 16 years of age, whether or not they work or are seeking work. D) only full-time employed individuals between the ages of 18 and 55.