During Periods of Low Inflation, the Short-Run Aggregate Supply Curve

question 46

Multiple Choice

During periods of low inflation, the short-run aggregate supply curve is:

• A) vertical.
• B) horizontal.
• C) upward sloping.
• D) downward sloping.

---

Definitions:

Legal Entity

An organization or entity that is legally recognized as having rights and responsibilities separate from its members or owners, such as corporations, trusts, and partnerships.

Directors Responsibility

The legal obligations that board directors have to manage a company's affairs diligently, in good faith, and in the best interests of the company and its shareholders.

Consumer Protection

Rules and policies established to protect consumer rights, promote fair competition, trading practices, and ensure truthful information is provided in the market.

Limited Liability

Liability is restricted to capital contributed; shareholders are shielded from liability for the corporation’s debts.