The Pre-Keynesian or Classical Economic Theory Viewed the Long-Run Aggregate

question 61

Multiple Choice

The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:

• A) horizontal at the full-employment level of real GDP.
• B) positively sloped at the full-employment level of real GDP.
• C) vertical at the full-employment level of real GDP.
• D) backward bending at the full-employment level of real GDP.

---

Definitions:

German War Plan

Strategic military initiatives and operations developed by Germany, particularly noted during World Wars I and II.

Sussex

A county in South East England, known for its historic significance and geographical features.

Unrestricted Submarine Warfare

A type of naval warfare in which submarines attack merchant ships without warning, famously used by Germany during both World Wars.

Zimmermann Telegram

A secret communication sent by Germany proposing a military alliance with Mexico in the event of the United States entering World War I against Germany, which helped sway US public opinion towards war.