Which Statement Is Consistent with the Theory of Aggregate Supply

question 110

Multiple Choice

Which statement is consistent with the theory of aggregate supply?

• A) An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level shifts the short-run aggregate supply to the right.
• B) An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level does not shift the short-run aggregate supply.
• C) An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level shifts the short-run aggregate supply to the left.
• D) An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level does not shift the short-run aggregate supply.

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Definitions:

Domesticated Plants

Plants that have been selectively bred and genetically modified by humans over generations to emphasize or introduce desirable traits.

Continuous Variation

Range of small differences in a trait.

Bell-Shaped Curve

A graphical representation of data that depicts a normal distribution, showing how a variable is spread across a population in a shape that resembles a bell.

Phenotypic Variation

The observable differences in appearance, function, and behavior among individuals of the same species due to genetic and environmental factors.