The Short-Run Aggregate Supply Curve Is Upward Sloping

question 43

Multiple Choice

The short-run aggregate supply curve is upward sloping

• A)in both the Classical and Keynesian models,but for different reasons.
• B)in the Classical model,but not in the Keynesian model.
• C)in the Keynesian model,but not in the Classical model.
• D)in neither the Classical nor the Keynesian model.

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Definitions:

APC

This stands for Average Propensity to Consume, which is the percentage of income that an individual or population spends rather than saving.

APS

Average Propensity to Save; it is a macroeconomic term that represents the proportion of income that is saved rather than spent on consumption. It is calculated by dividing total savings by total income.

APC

Average Propensity to Consume, which is the fraction of income that a person or population spends rather than saving.

APS

The Average Propensity to Save, which is the proportion of total income that is saved rather than spent on consumption.