Asked by Morgan McCord on Jul 21, 2024
Verified
Which of the segments of the aggregate supply curve is called the Keynesian region?
A) QR
B) RS
C) ST
D) QRS
E) RST
Aggregate Supply Curve
A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at various price levels.
Keynesian Region
An economic concept from Keynesian theory suggesting ranges of output levels where total spending is sensitive to changes in the level of income, affecting unemployment levels.
- Detect the different spans of the aggregate supply curve and assess their importance for economic policy planning.
Verified Answer
DG
denetriA gardnerJul 26, 2024
Final Answer :
A
Explanation :
The Keynesian region of the aggregate supply curve is characterized by a horizontal segment, indicating that an economy can increase output without increasing the price level, typically at the lower levels of economic activity. This is represented by the segment QR.
Learning Objectives
- Detect the different spans of the aggregate supply curve and assess their importance for economic policy planning.