The Shape of the Immediate-Short-Run Aggregate Supply Curve Implies That

question 44

Multiple Choice

The shape of the immediate-short-run aggregate supply curve implies that

• A)total output depends on the volume of spending.
• B)increases in aggregate demand are inflationary.
• C)output prices are flexible, but input prices are not.
• D)government cannot bring an economy out of a recession by increasing spending.

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Definitions:

Implicit

Refers to something that is suggested or implied but not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or interpretation.

Publicly Stated

Expressed or declared openly in a public forum or environment.

Shoplift

The act of stealing goods from a shop while pretending to be a customer.