If All Prices Are Stuck at a Predetermined Level, Then

question 21

Multiple Choice

If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, this curve:

• A) is horizontal.
• B) is vertical.
• C) slopes upward and to the right.
• D) slopes downward and to the right.

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