When Talking About Aggregate Supply, It Is Necessary to

question 260

Multiple Choice

When talking about aggregate supply, it is necessary to

• A) focus on the short run.
• B) focus on the long run.
• C) distinguish between long-run aggregate supply and short-run aggregate supply.
• D) distinguish between long-run full employment and short-run full employment.

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Definitions:

Circuit Breakers

Mechanisms used in stock exchanges to temporarily halt trading on an exchange to curb panic-selling, triggered by drastic drops in value.

Flash Crashes

Rapid, deep, and volatile market declines, usually occurring within a very short time period, often caused by automated trading.

New York Stock Exchange (NYSE)

The largest stock exchange in the world by market capitalization, located in New York City.

Inside Quotes

The highest bid and the lowest ask prices among various market makers or participants in a financial market for a particular security.