What Is the Shape of the AS Curve According to Keynesians

question 144

Multiple Choice

What is the shape of the AS curve according to Keynesians?

• A)Vertical,because prices tend to be inflexible.
• B)Vertical,at the level of LAS.
• C)Horizontal,because wages are inflexible.
• D)Downward-sloping,because wages are inflexible.

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Definitions:

Consumer Surplus

The rift between the financial input consumers are willing to make for acquiring a good or service and the actual amount they spend.

Demand

Represents the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Consumer Surplus

The contrast between the overall amount consumers are willing to pay for a good or service and the total they actually pay.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period.