If the aggregate supply curve is vertical, then the short-run Phillips curve will
A. be horizontal.
B. also be vertical.
C. slope upward.
D. slope downward.
Answer: B
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In a closed economy without the government, income equals:
A) aggregate savings plus aggregate investment. B) aggregate consumption. C) aggregate savings. D) aggregate savings plus aggregate consumption.
An increase in the supply of bonds leads to
A) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand. B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. C) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. D) a decrease in the price of bonds, an increase in the interest rate, and a decrease in aggregate demand.