According to Monetarists,the Aggregate Supply Curve Is

question 98

Multiple Choice

According to monetarists,the aggregate supply curve is

• A)Upward-sloping to the right.
• B)Vertical at the natural rate of unemployment.
• C)Flat until full employment is reached.

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Definitions:

Nonprice Rationing

The allocation of goods among consumers using criteria other than price, such as waiting times or quotas.

Excess Supply

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price.

Rationing Coupons

Tickets or coupons issued by the government or an organization, allowing the holder to purchase a fixed amount of a scarce commodity or service.

Misallocation

An inefficient distribution of resources in an economy, leading to outcomes where resources are not used in the best possible ways according to the needs and wants of society.