When the AS Curve Is Vertical,increases in AD Will

question 77

Multiple Choice

When the AS curve is vertical,increases in AD will

• A)Increase the average price level but have no impact on unemployment.
• B)Increase the average price level and decrease unemployment.
• C)Increase both the average price level and unemployment.
• D)Have no impact on either the average price level or unemployment.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that cannot be directly traced to a specific product, including salaries of supervisors, rent, and utilities of the factory.

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when a particular decision is made, indicating the cost of missed opportunities.

Alternatives

Different choices or options available to a decision-maker in a decision-making process.

Potential Benefit

The anticipated advantage or value that might be gained from a particular action or investment, not assured but possible.