Economic Policies Are Ineffective Concerning Quantities of Output Directly When

question 69

Multiple Choice

Economic policies are ineffective concerning quantities of output directly when

• A) the aggregate supply curve is flat.
• B) the aggregate demand is flat.
• C) the aggregate supply is vertical.
• D) the economy is not producing at capacity.

---

Definitions:

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession, or according to rules that must be applied rigidly.

Repetitive Behaviors

Actions performed over and over again, which can be a characteristic of certain psychological conditions, such as OCD.

Obsessive Thoughts

Intrusive, unwanted thoughts that often cause distress or anxiety and may lead to compulsive behaviors in an attempt to alleviate the distress.

Obsessive-Compulsive Disorder (OCD)

A mental disorder where individuals experience repetitive, unwanted thoughts (obsessions) and behaviors (compulsions) they feel compelled to perform.