Under the Keynesian theory, the Aggregate Supply curve is a straight line through the origin drawn at an angle of ______…
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Under the Keynesian theory, the Aggregate Supply curve is a straight line through the origin drawn at an angle of __________.
(Choose the correct option to fill in the blank)
✓ Correct answer: b)
45
Explanation
In the Keynesian short-run model with unused resources and fixed prices, the aggregate supply curve is represented by a 45-degree line through the origin, implying that output will adjust to meet demand.
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