Describe why aggregate supply curve is vertical
Explain why the aggregate supply curve is vertical (in a graph with the Price Level on the vertical axis and Real GDP on the horizontal axis) under Classical economic assumptions and positively sloped in Keynesian analysis.
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In contrast, if demand is inelastic, tax increase from $1 to $1.50 will boost tax revenue. Under what situations might reduction of excise tax actually produce more tax revenue?
Describe why aggregate supply curve is vertical (in a graph with Price Level on vertical axis and Real GDP on horizontal axis) under Classical economic assumptions.
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In terms of accounting, what are the operating items on the income statement? What are examples of non-operating items on income statement?
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