The short-run aggregate supply curve in modern Keynesian analysis represents the relationship between
A. the nominal output of goods and services and the real output of goods and services.
B. the real output of goods and services in the economy and the price level when people have fully adjusted their behavior.
C. the real output of goods and services in the economy and the price level when people have not fully adjusted their behavior.
D. the nominal amount of goods and services in the economy and the price level.
Answer: C
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You are at a sports memorabilia convention and you are the last of 100 people chosen to have your picture taken with either Joe Montana or Nolan Ryan
Your payoff depends on how quickly you can have your picture taken, as you have many other things you want to see at the convention. You have no preference with whom you have your picture taken, and since you were the last chosen you will be the last person in line to get your picture taken with the sports legend you select. Identify all the Nash equilibria in this game and explain your reasoning.
An increase in nominal gross domestic product necessarily entails an increase in
A) both real output and the price level. B) either real output or the price level (or both). C) real output and employment. D) the price level and employment.