According to the Hybrid,or Consensus,view of Aggregate Supply,the Chance for an Aggregate

question 21

Multiple Choice

According to the hybrid,or consensus,view of aggregate supply,the chance for an aggregate demand increase to cause inflation accelerates as

• A)The economy moves away from full employment.
• B)Unemployment increases.
• C)The slope of aggregate supply becomes flatter.
• D)The economy moves toward capacity.

---

Definitions:

Short-run Supply Curve

A graphical representation showing the quantity of a good that producers are willing to sell at different prices in the short run, where at least one input is fixed.

Cost Curves

Graphical representations that show the cost of production at different levels of output.

Identical

Identical means exactly the same, without any difference in form, nature, or substance, often used to describe objects, products, or entities.

Long-run Equilibrium

A state in which all factors of production and inputs in a market are fully adjusted to the market conditions, allowing for steady-state operation without excess supply or demand.