If in the Short Run Prices Did Not Respond at All

question 57

Multiple Choice

If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would

• A)be vertical.
• B)be horizontal.
• C)slope up.
• D)slope down.

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Definitions:

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment.

Tax-exempt Shareholders

Shareholders or investors who do not have to pay income taxes on the dividends received from their investments, often applied to certain types of institutional investors.

Partnership

A legal form of business operation between two or more individuals who share management and profits, each partner contributing in terms of resources, labor, or skill.

Disadvantages

Disadvantages refer to the unfavorable or negative aspects of a particular situation, decision, or solution.