The Flat Region of the Aggregate Supply Curve Reflects the Keynesian

question 47

Multiple Choice

The flat region of the aggregate supply curve reflects the Keynesian belief that:

• A)both inflation and unemployment does not exist.
• B)high growth rate of money supply poses problems in the economy.
• C)unemployment is usually experienced amidst high real GDP.
• D)government intervention in the economy aggravates the problems of inflation and unemployment.
• E)inflation is not a problem when unemployment is high.

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