If the Short-Run Aggregate Supply Curve Is Assumed to Be

question 66

Multiple Choice

If the short-run aggregate supply curve is assumed to be horizontal and there are no international capital flows,then the big,comprehensive model corresponds to which of the following special cases?

• A) classical closed economy
• B) aggregate demand and aggregate supply
• C) IS-LM model
• D) Mundell-Fleming with floating exchange rate

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Definitions:

Ventilator

A machine that supports or takes over breathing for patients who are unable to breathe adequately on their own.

Respirator

A device designed to protect the wearer from inhaling harmful dust, fumes, vapors, or gases.

Increased Afterload

A condition in which the heart has to work harder to eject blood due to increased vascular resistance.

Increased Preload

A condition in which there is an elevated volume of blood in the ventricles at the end of diastole, before the heart contracts.