Intuitively, the Lucas Supply Curve Grows More Inelastic as General

question 31

Multiple Choice

Intuitively, the Lucas supply curve grows more inelastic as general prices become more variable because

• A) firms get less information from forecasts of general prices.
• B) firms get exaggerated bad news about the future trend of general prices.
• C) employment adjustments become more difficult during periods of uncertain inflation.
• D) a and c only.
• E) none of the above.

---

Definitions:

Uterine Horn

One of the two tubes in some female mammals, including rodents and pigs, that extend from the sides of the uterus, where fertilization often occurs.

Uterine Body

The main, central part of the uterus, where implantation and fetal development occur.

Fertilized Ova

A zygote formed through the union of a sperm and an egg, marking the beginning of a human life.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed objectives while remaining independent organizations.