When the Aggregate Supply Curve Is Horizontal

question 138

Multiple Choice

When the aggregate supply curve is horizontal,

• A) many firms are likely to have excess capacity.
• B) the economy is close to full capacity.
• C) resources are being utilized at full capacity.
• D) the prices level increases with additional production.

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Definitions:

Formal Parameter

The variables declared by a method that serve as placeholders for the values passed into the method when it is called.

Enumerated Type

A data type consisting of a set of named values, used in programming to enhance code readability and manageability.

Special Value

A value used in programming to denote unusual conditions or specific conditions (e.g., NULL to indicate the lack of a value).

Arrays

Data structures in programming that store elements of the same type in a contiguous memory location.