A horizontal aggregate supply curve reflects the assumption that the
A) price level is constant.
B) velocity of money is constant.
C) saving rate is equal to zero.
D) economy is at full employment.
A
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Why does an economist create a market demand curve?
(A) To show how various conditions can change the demand for a good. (B) To learn what demands the market will make under unusual conditions. (C) To have an idea of how a market would change if conditions in an area changed. (D) To predict how people will change their buying habits when prices change.
Many health economists believe that health-care reform will:
a. decrease demand for new, better, and more expensive medical advances. b. lower premiums for young adults c. eliminate private health insurance entirely. d. have a very limited effect on reducing government health-care expenditures.