If British incomes rose, this would be reflected in the short-run model as a shift in the U.S. AS to the right.

True

False

An increase in the inflation target would shift the AD to the left.

True

False

The Keynesian school assumes that aggregate supply is plentiful and thus passive in their model.

True

False

The classical school assumes that since wants and desires are unlimited, aggregate demand is plentiful and thus passive.

True

False

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The detailed answer for the above question is provided below Statement Analysis 1 Statement 1 If Bri... View the full answer