Which of the Following Is an Accurate Statement About the Aggregate

question 54

Multiple Choice

Which of the following is an accurate statement about the aggregate supply curve?

• A)Keynesians view it as vertical up until full employment,at which point it becomes horizontal.
• B)Monetarists view it as horizontal.
• C)The consensus view is that it begins as horizontal,then starts to slope upward to the right as the economy approaches full employment,and eventually becomes vertical beyond full employment.
• D)The Keynesian view is that it is vertical.

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Definitions:

Socially Optimum

The most desirable level of output or activity from a societal perspective, balancing costs and benefits to achieve maximum social welfare.

Coal Mine Pollution

The release of harmful substances into the environment as a result of coal mining activities, affecting air, water, and soil quality.

Automobile Emissions

The pollutants released into the atmosphere by motor vehicles, including carbon monoxide, nitrogen oxides, and hydrocarbons.

Specific Tax

A fixed amount imposed by the government on a product, per unit of quantity.