If the aggregate supply curve is flat,
a. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP.
b. contractionary fiscal or monetary policy will cause significantly less inflation.
c. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
d. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
c
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The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 300th dozen doughnuts each day?
A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen
Explain how corporate profits are taxed twice
What will be an ideal response?