Assuming That a Is Positive, How Are Theories of Short-Run

question 121

Multiple Choice

Assuming that a is positive, how are theories of short-run aggregate supply expressed mathematically?

• A) quantity of output supplied = natural rate of output + a(actual price level - expected price level)
• B) quantity of output supplied = natural rate of output + a(expected price level - actual price level)
• C) quantity of output supplied = a(actual price level - expected price level) - natural rate of output
• D) quantity of output supplied = a(expected price level - actual price level) - natural rate of output

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