The Flat Region of the Aggregate Supply Curve Reflects the Keynesian

question 47

Multiple Choice

The flat region of the aggregate supply curve reflects the Keynesian belief that:

• A)both inflation and unemployment does not exist.
• B)high growth rate of money supply poses problems in the economy.
• C)unemployment is usually experienced amidst high real GDP.
• D)government intervention in the economy aggravates the problems of inflation and unemployment.
• E)inflation is not a problem when unemployment is high.

---

Definitions:

Grassroots Origins

A movement or campaign that begins and grows at the local or community level, often reflecting widespread public concern rather than top-down directives.

Black Southern Churches

Denotes religious and community institutions in the Southern United States, predominantly attended by African American congregants, playing key roles in social and civil rights movements.

Liberal Law Offices

Law firms that advocate for progressive or liberal legal policies and rights.

16th Street Baptist Church

A historical church in Birmingham, Alabama, that was the site of a racially motivated bombing in 1963 by the Ku Klux Klan, marking a pivotal event in the Civil Rights Movement.