The Short-Run Version of Aggregate Supply Assumes That

question 45

Multiple Choice

The short-run version of aggregate supply assumes that

• A)product prices are fixed, while resource prices are flexible.
• B)product prices are flexible, while resource prices are fixed.
• C)both input and product prices are flexible.
• D)both input and product prices are fixed.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time frame.

Price

The sum of money anticipated, needed, or handed over in exchange for an item.

Market Demand Curve

A graphical representation that shows the quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, within a specific time period.