According to Pigou,the Keynesian Dilemma of a Vertical AD Curve

question 48

Multiple Choice

According to Pigou,the Keynesian dilemma of a vertical AD curve is not a dilemma at all because the demand for commodities depends directly on the level of real balances.Thus,the

• A)IS curve would shift to the left whenever the price level falls.
• B)AD curve would shift to the left whenever the price level falls.
• C)AD curve would shift to the right whenever the price level falls.
• D)AD curve would always have a negative slope.

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