Economists Who View the AS Curve as Upward-Sloping Believe That

question 44

Multiple Choice

Economists who view the AS curve as upward-sloping believe that changes on the demand side _______ result in changes in Real GDP in the short run.Economists who view the AS curve as vertical believe that government changes from the demand side________________ to raise Real GDP in the short run.

• A) cannot; can do many things
• B) may; cannot do anything
• C) may; can do many things
• D) cannot; cannot do anything

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Definitions:

Express Authority

The authority of an agent that arises when the principal explicitly instructs the agent to do something. Also called actual authority.

Equitable Parity Rule

A legal principle ensuring fair treatment of all parties by balancing interests in a judicial or contractual scenario.

Express Authority

Explicit permission granted to an individual or entity to act on behalf of another, typically in a legal or business context.

Disclosed Principal

A principal whose identity is known to a third party. The third party is aware that the agent is making an agreement on behalf of the principal.