The Keynesian Short-Run Aggregate Supply Curve in the Simplified Keynesian

question 173

Multiple Choice

The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because

• A) a vertical curve does not make economic sense.
• B) prices and wages will never decrease.
• C) the classical model is better in explaining how the economy operates.
• D) some price adjustments do take place in the short run.

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Definitions:

Null Hypothesis

The default assumption in statistical hypothesis testing that there is no significant effect or difference, intended to be challenged by the alternative hypothesis.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution, which affects the calculation of statistical estimates.

T-test for Dependent Means

A statistical test used to compare the means of two related groups.

Alternative Hypothesis

A statement proposing a relationship between variables, differing from the null hypothesis, and is tested for possible acceptance.