If aggregate supply is vertical, then which of the following statements must be true?
A. Aggregate demand does not affect the quantity of output.
B. Aggregate demand does not cause inflationary changes in price level.
C. Inflation will accompany any rise in output.
D. Inflation creates greater social benefits.
Answer:A
If aggregate supply is vertical, then which of the following statements must be true?
A. Aggregate demand does not affect the quantity of output. B. Aggregate demand does not cause inflationary changes in price level. C. Inflation will accompany any rise in output. D. Inflation creates greater social benefits.
Explanation: Type: Multiple Choice