The Determinants of Aggregate Supply

question 107

Multiple Choice

The determinants of aggregate supply

• A) are consumption, investment, government, and net export spending.
• B) explain why real domestic output and the price level are directly related.
• C) explain the three distinct ranges of the aggregate supply curve.
• D) include resource prices and resource productivity.

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Definitions:

Cognitive Dissonance

A psychological phenomenon involving discomfort felt at conflicting beliefs, values, or attitudes, leading to an alteration in one of the conflicting factors.

Door-in-the-face Technique

A persuasion strategy where a large, likely-to-be-rejected request is followed by a smaller, more reasonable request.

Election Sign

A physical marker or poster designed to promote or indicate support for a particular candidate or political position during electoral campaigns.

Politician

An individual who is actively involved in politics, especially one holding or seeking an elected office.