The Relationship Between the Level of Prices and the Total

question 102

Multiple Choice

The relationship between the level of prices and the total quantity of goods and services that firms supply in the short- run is:

• A) positive.
• B) negative.
• C) marginally decreasing.
• D) similar in the long run and in the short run due to the existence of sticky prices.

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Definitions:

Reliable Detection

The ability to consistently identify or recognize true occurrences of a specific event or condition.

Difference Threshold

The smallest amount of difference in intensity between two stimuli that a person can detect half the time.

Reliable Detection

The ability to consistently and accurately identify or recognize the presence of a specific stimulus or condition.

Sense Organs

Specialized structures in the body that respond to external stimuli and send signals to the brain, enabling perception.