In Keynesian theory, why is the aggregate supply curve horizontal in the short run?Select one:Interest rates are assumed fixed in the short runPrices are assumed fixed in the short runAggregate demand is assumed fixed in the short runOutput is assumed fixed in the short run

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In Keynesian theory, why is the aggregate supply curve horizontal in the short run?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section16.A: Policy Disputes Using The Self Correcting Aggregate Demand And Supply Model

Problem 9SQ

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In Keynesian theory, why is the aggregate supply curve horizontal in the short run?

Select one:

Interest rates are assumed fixed in the short run
Prices are assumed fixed in the short run
Aggregate demand is assumed fixed in the short run
Output is assumed fixed in the short run

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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