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What is the cause of the Keynesian perfectly elastic Aggregate Supply curve? -

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Question

What is the cause of the Keynesian perfectly elastic Aggregate Supply curve? 

Options

  • Wage price rigidity

  • Constant Marginal Product of Labour

  • Both of these

  • None of these

MCQ

Solution

Both of these

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Determination of Equilibrium Income in the Short Run - The Multiplier Mechanism
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