QUESTION $24$

Which of the following is not true?

A$.$ The extreme new classical aggregate supply curve is vertical.

B$.$ The extreme Keynesian aggregate supply curve is horizontal.

C$.$ The extreme supply$-$side case has tax cuts shifting the aggregate supply curve to the right.

D$.$ The neoclassical synthesis has a short$-$run vertical aggregate supply curve and an upward sloping long run aggregate supply curve.

E$.$ The extreme Keynesian case has tax cuts with only shifting aggregate demand.

QUESTION $25$

Which of the following is true concerning the money supply?

A$.$ The real money supply is the nominal GNP deflated by a price index.

B$.$ The nominal money supply is the total GNP not indexed for inflation.

C$.$ The real money supply is the nominal GNP adjusted for inflation.

D$.$ The nominal money supply is the real GNP adjusted by real interest rates.

E$.$ This is a trick question. None of the above are true.

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