If You Were to Draw a Line on a Graph

question 10

Multiple Choice

If you were to draw a line on a graph with the price level on the vertical axis and real GDP on the horizontal axis that would represent aggregate supply, you would draw

• A) a horizontal line at the current price level to reflect your taking price to be exogenous in the short run.
• B) a vertical line at potential GDP to reflect your taking aggregate supply to be determined by an exogenous capital stock, a given technology, and employment equal to its potential.
• C) a downward-sloping line to reflect the diminished profitability of producing output when prices are high.
• D) an upward-sloping line to reflect the ability of higher prices to elicit expanded output.
• E) none of the above.

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Definitions:

IM

Short for Instant Messaging, a method of communication that allows two or more people to send text messages in real-time over the internet.

Ethical Dilemma

A situation where an individual faces a difficult decision involving a conflict between moral imperatives.

Conflicting Alternatives

Situations where two or more options are available but are incompatible with each other, requiring a choice to be made.

High-context Cultures

Cultures where communication is often indirect and relies heavily on context, non-verbal cues, and the relationships between speakers.