Question
(a) What is the significance of (i) a vertical aggregate supply (AS) curve, (ii) a horizontalAS curve, and (iii) an upward-sloping AS curve? Explain briefly.
(a) What is the significance of (i) a vertical aggregate supply (AS) curve, (ii) a horizontalAS curve, and (iii) an upward-sloping AS curve? Explain briefly. Which of the aforesaid three isresponsible for the "fixed prices" assumed in the simple Keynesian model of incomedetermination?
(b)How is unplanned investment different from planned investment?
What is the significance of unplanned investment in disequilibrium and in equilibrium?
Explain briefly.
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
