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

question 71

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.
• E)downward sloping at all ranges of output.

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Definitions:

Pepsi

A global beverage and food company known for its eponymous brand of cola and a wide range of other products.

Coke

A carbonaceous solid derived from coal through the process of carbonization, used primarily as a fuel and in the production of steel.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level in a given time period.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay at a given price.