Which of the following statements does not hold true in case of the Keynesian Economics ?
A. Velocity of money is an unstable function of its determinants.
B. Labour is subject to money illusion.
C. Aggregate supply function tends to become flat at levels of output well below full employment and to become steeper as full capacity is reached.
D. Aggregate supply schedule is vertical, and output and employment are completely supply determined.
Answer:D
Which of the following statements does not hold true in case of the Keynesian Economics ?
A. Velocity of money is an unstable function of its determinants. B. Labour is subject to money illusion. C. Aggregate supply function tends to become flat at levels of output well below full employment and to become steeper as full capacity is reached. D. Aggregate supply schedule is vertical, and output and employment are completely supply determined.