State with the brief reas whether following statements are true or false. (A) The Classical economics believed that if there were employment in an economy it would tend to be eliminated by a fall in the price level. (B) Stagflation is caused by a leftward shift in the aggregate demand curve. (C) Labour Force shifts the Short run aggregate supply curve but not the long run aggregate supply curve.

State with the brief reas whether following statements are true or false. (A) The Classical economics believed that if there were employment in an economy it would tend to be eliminated by a fall in the price level. (B) Stagflation is caused by a leftward shift in the aggregate demand curve. (C) Labour Force shifts the Short run aggregate supply curve but not the long run aggregate supply curve.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 2SCQ: In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices...

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