Refer to the Diagram Given Below

question 102

Multiple Choice

Refer to the diagram given below. Assume that the nominal wages of workers in an economy are initially set on the basis of the price level P₂ and that the economy initially is operating at the full-employment level of output Q_f.In the diagram, the long-run aggregate supply curve:

• A)is represented by AS₂.
• B)is a vertical line extending from Q_f upward through the points e, b, and d.
• C)may be either AS₁, AS₂, or AS₃ depending on whether the price level is P₁, P₂, or P₃.
• D)is a horizontal line extending from P₂ rightward through points f, b, and g.

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Definitions:

Large Intestine

Organ that receives digestive waste from the small intestine and concentrates it as feces.

Mouth

The opening in an animal's body that is the beginning of the digestive tract, through which food is ingested.

Brush Border

A microvillar structure that lines the intestine's absorptive cells, enhancing the surface area for digestion and absorption of nutrients.

Microvilli

Microscopic cellular membrane protrusions that increase the surface area for absorption, especially in the epithelial cells of the small intestine.