Explain what happens to the short-run aggregate supply curve when output exceeds its potential.
According to new Keynesians,why can firms increase output in the short run in response to higher prices?
What is the principal source of change in productivity growth?
In the aggregate demand-aggregate supply model,if entrepreneurs become convinced that future profitability of capital has increased
A) current output will fall, but the price level will rise.
B) current output will rise, but the price level will fall.
C) current output and the price level will both rise.
D) current output and the price level will both fall.