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

question 61

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.

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Definitions:

Cohorts

Groups of subjects in a study who share a defining characteristic, typically born at around the same time, but can also refer to groups in experimental designs or demographic studies.

Flynn Effect

The observed rise over time in standardized intelligence test scores, attributed to various factors including improved nutrition, education, and test-taking strategies.

Standardized

Consistent and uniform procedures applied in testing or assessment to ensure fairness and comparability of data or results.

Generations

Refers to all of the people born and living at about the same time, regarded collectively, often used to categorize specific cohorts in sociology, like Baby Boomers or Millennials.