Economists Who View the AS Curve as Vertical Believe That

question 51

Multiple Choice

Economists who view the AS curve as vertical believe that government ________________ to raise Real GDP (in the short run) from the demand side of the economy.Economists who view the AS curve as upward-sloping believe that changes in Real GDP (in the short run) _________ result from changes on the demand side.

• A) can do many things; cannot
• B) cannot do anything; may
• C) can do many things; may
• D) cannot do anything; cannot

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Additional Paid-In Capital

The amount of capital from shareholders that is more than the par value of the shares issued.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business, rather than distributed to shareholders as dividends.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.