The Horizontal Shape of the Immediate Short Run Aggregate Supply

question 47

Multiple Choice

The horizontal shape of the immediate short run aggregate supply implies that:

• A)the total amount of output in the economy depends only on the general price level.
• B)the total amount of output in the economy depends only on the volume of spending.
• C)the total amount of output in the economy is fixed.
• D)the total amount of spending depends on the price of inputs.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production and language processing.

Cerebral Cortex

The outermost layer of the brain, involved in high-level functions such as thought, language, memory, and consciousness.

Speaking Fluently

Speaking fluently involves the ability to express thoughts, feelings, or information smoothly and with ease, often reflecting a high level of proficiency in a language.

Left Hemisphere

The left side of the brain, responsible for controlling the right side of the body and processing language and analytical tasks.