6:32 PM ccsu.blackboard.com .11 AT&T; QUESTION 14 1points Save Answer The Keynes

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6:32 PM ccsu.blackboard.com .11 AT&T; QUESTION 14 1points Save Answer The Keynesian Perspective of the economy argues that prices and wages do not (sticky-prices"). In the AS-AD model this means A. The economy will always adjust back to long run equilibrium at potential GDP O B. A horizontal long run aggregate supply curve. C. The economy will not automatically adjust back to potential GDP OD-None of the above. QUESTION 15 2 points Save Answer Neoclassical economics believes that the economy will always adjust back to equilibrium being equal to potential GDP after a recession because during a recessions will fall, causing the curve to shift to the right. OA wages and price; long runaggegate supply curve (potential GDP) OB. government spending; aggregate demand ° C. wages and prices; aggregate supply curve . government spending; aggregate supply Click Save and Submit to save and submit. Click Save Al Answers to save all answers. Save All Answers Save and Submit

Explanation / Answer

14 option d, it implies that they do not change instantaneously. It takes time to change that is they adjust gradually.

15 option C, because in recession there will be decrease in the demand that is lower wages and price.

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