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

question 20

Multiple Choice

If the short-run aggregate supply curve is assumed to be horizontal and there are no international capital flows, then the mother of all models in the Appendix to Chapter 14 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 model with floating exchange rate

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Definitions:

Intensive

Describes activities or processes that are highly concentrated, requiring significant effort, resources, or focus in a compact duration or area.

Simple Design

A design approach focused on minimalism and clarity, avoiding unnecessary elements to achieve efficiency or user-friendliness.

Specializing Individuals

Refers to individuals who focus and develop expertise in a specific area of work or study.

Structural Configuration

The arrangement and relationships between components within a system, organization, or structure.