Why Would One Expect the AD Curve to Be Vertical

question 180

Multiple Choice

Why would one expect the AD curve to be vertical?

• A)If the price level rises, relative prices haven't changed so people would not change their choices.
• B)If the price level rises, changes in choices by suppliers are offset by changes in demanders.
• C)People do not make choices based on relative prices, but instead based on absolute prices.
• D)Substitution is not one of the reasons why the AD curve has its slope.

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Definitions:

Self-Improvement

refers to the process of seeking to better oneself through activities that improve knowledge, skills, and personal development.

Self-Management

The ability to control one's own actions, manage time and resources effectively, and make independent decisions.

Social Context

The environment of people, cultures, and institutions in which individuals live and operate, which significantly influences their behaviors, beliefs, and interactions.

Resource Inputs

The materials, labor, and capital that are utilized in the production process of goods or services.