A Vertical Aggregate Supply Curve

question 139

Multiple Choice

A vertical aggregate supply curve

• A)Implies that supply-side policies will have no effect on the macro equilibrium.
• B)Implies that aggregate demand shifts have no impact on output.
• C)Is likely in the short run.
• D)Reflects the inflexibility of prices and wages.

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Definitions:

Small Stocks

Small stocks refer to shares of companies with a relatively small market capitalization, often considered to have high growth potential but also higher risk.

Capital Gains Yield

The price appreciation component of the total return on investment, excluding dividends or interest.

Shares

Units of ownership interest in a corporation or financial asset, providing shareholders with a claim on company assets and earnings.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values, typically used to assess the volatility of financial instrument prices.