The Initial Aggregate Demand Curve Is AD₁ and the Initial

question 95

Multiple Choice

The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run, the aggregate supply curve is vertical in the diagram because:

• A)nominal wages and other input prices are assumed to be fixed.
• B)real output level Q_f is the potential level of output.
• C)price level increases produce perfectly offsetting changes in nominal wages and other input prices.
• D)higher than expected rates of actual inflation reduce real output only temporarily.

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Definitions:

Experimental Group

In research, a group of subjects who receive the treatment or variable being tested for its effect.

Control Group

The group in an experiment or study that does not receive the experimental treatment, serving as a baseline for comparison with the experimental group.

Mathematical Summaries

The use of statistics, such as mean, median, mode, and range, to provide a comprehensive overview of numerical data.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on data from a sample.