In the Short Run, the Aggregate Supply Curve of an Economy

question 21

Multiple Choice

In the short run, the aggregate supply curve of an economy is:

• A)upward sloping.
• B)downward sloping.
• C)horizontal.
• D)vertical.

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Definitions:

Risk Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points.

Optimal Risky Portfolio

A portfolio that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return, according to modern portfolio theory.

Risk Free Rate

The theoretical return on an investment with zero risk, often represented by government bonds or treasury bills of a stable country.