The Portion of the Short-Run Aggregate Supply That Reflects the Economy's

question 40

Multiple Choice

The portion of the short-run aggregate supply that reflects the economy's resources are not fully employed is the:

• A)vertical portion.
• B)horizontal portion.
• C)upward sloping portion.
• D)none of the above.

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Definitions:

Output

The aggregate output of merchandise or services generated by a company, sector, or economic system.

Production Function

A mathematical model describing the relationship between the inputs used in production and the resulting output of goods or services.

Returns To Scale

The change in output as a result of a proportional change in all input factors in the production process.

Marginal Product

The additional output resulting from the use of one more unit of a production factor, holding other factors constant.