Answer to Question #63536 in Macroeconomics for Hans

Question

The positively sloped (but not vertical) AS curve ...

Select one or more:
a. is not consistent with agents who have perfect foresight.
b. is implied by some rigidities in the labor or goods market.
c. can be consistent with perfect competiton on the goods market.
d. is implied by full price flexibility in the neoclassical model.
e. is implied by the Keynesian assumption that prices do not change at all.

Answer 1

a,d.