Which of the Following Statements Is Correct Concerning the Views

question 69

Multiple Choice

Which of the following statements is correct concerning the views of new Keynesians and new classicals concerning aggregate supply?

• A)New classical economists believe the short-run and long-run aggregate supply curves are both vertical.
• B)New Keynesian economists believe the short-run and long-run aggregate supply curves slope upward.
• C)Both new Keynesian and new classical economists believe the aggregate supply curve is vertical in the long run.
• D)Both new Keynesian and new classical economists believe the aggregate supply curve slopes upward in the long run.

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Definitions:

Monomial

An algebraic expression consisting of a single term, which can be a constant, a variable, or multiples of variables and constants.

Sum

The result obtained by adding two or more numbers or expressions.

Sum

The result of adding two or more numbers or expressions together.

Polynomials

Algebraic expressions consisting of variables and coefficients, constructed from operations of addition, subtraction, multiplication, and non-negative integer exponents of variables.