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

question 44

Multiple Choice

If the short-run aggregate supply curve is assumed to be horizontal, international capital flows are infinitely elastic, and the nominal exchange rate is fixed, then the mother of all models in the Appendix to Chapter 14 corresponds to which of the following special cases?

• A) classical open economy
• B) IS-LM model
• C) Mundell-Fleming model with floating exchange rate
• D) Mundell-Fleming model with fixed exchange rate

---

Definitions:

Collaborates

The act of working jointly with others or together especially in an intellectual endeavor.

Expatriate

An individual who lives outside their native country, often for work reasons, embracing a new cultural environment while maintaining their original nationality.

Global Leadership

The ability to influence and guide individuals, teams, or organizations across cultural and geographic boundaries, often involving diverse and complex global issues.

Customer-Facing

Pertains to activities, roles, or functions in a business that involve direct interaction with the customers.