8. (2 points) Suppose the economy is operating in the horizontal part of the Keynesian zone of the SRAS curve. Suddenly,

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8 2 Points Suppose The Economy Is Operating In The Horizontal Part Of The Keynesian Zone Of The Sras Curve Suddenly 1 (111.47 KiB) Viewed 12 times

8. (2 points) Suppose the economy is operating in the horizontal part of the Keynesian zone of the SRAS curve. Suddenly, aggregate demand decreases but the economy remains in the horizontal part of the Keynesian zone of the SRAS curve. As a result: a. Prices will remain unchanged/increase (choose one of the options in bold). b. Real GDP will remain unchanged/increase (choose one of the options in bold). 9. (2 points) Suppose the economy is operating in the vertical part of the neoclassical zone of the SRAS curve. Suddenly, aggregate demand decreases but the economy remains in the vertical part of the neoclassical zone of the SRAS curve. As a result: a. Prices will remain unchanged/increase (choose one of the options in bold). b. Real GDP will remain unchanged/increase (choose one of the options in bold).