In the Medium Run the Aggregate Supply Curve Is Upward

question 46

Multiple Choice

In the medium run the aggregate supply curve is upward sloping since

• A)workers immediately realize that nominal wage increases are really the result of price increases
• B)firms encounter costs in resetting prices and are reluctant to change wages following a change in aggregate demand
• C)wages and prices always immediately change in proportion to the money stock
• D)there is always natural friction in the labor market that prevents unemployment from reaching zero
• E)none of the above

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Definitions:

Maternal Mortality Rate

A measure of the number of deaths of women due to pregnancy-related causes per 100,000 live births in a given year or place.

Live Births

The delivery of a baby who shows any sign of life, such as breathing or heartbeat, after separation from the mother's body.

Dilation

The process of widening or expanding an organ or opening in the body, often related to the eyes or blood vessels in response to various conditions.

Cervix

The lower, narrow part of the uterus that opens into the vagina, playing a key role in female reproductive health and childbirth.