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

question 12

Multiple Choice

If the short-run aggregate supply curve is assumed to be horizontal and international capital flows are infinitely elastic,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:

Costal Cartilages

Costal cartilages are bars of hyaline cartilage that serve to prolong the ribs anteriorly and contribute to the elasticity of the thoracic cage.

Sternum

Breastbone.

Olecranon Process

Process on the distal end of the ulna, forming the point of the elbow.

Elbow

The joint connecting the forearm to the upper arm, allowing for the flexion and extension of the forearm.