The long run aggregate supply curve is perfectly vertical to both the RBC and New keynesian models
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Question:
The long run aggregate supply curve is perfectly vertical to both the RBC and New keynesian models of inflation and economic growth. this implies that
a. inflation and long run supply and positively correlated
b. sthe slope of the LRAS curve is negative
c. there is no relationship between long run growth and inflation
d. all of the possible choices are correct
money neutrality implies that
a. all the possible choices are correct
b. increaes in the money supply have no long run effect on aggregate demand
c. increases in money supply have no effects on long run economic growth
d. increases in the money supply have no effect on inflation in the long run
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