If the Aggregate Supply Curve Is Steep

question 98

Multiple Choice

If the aggregate supply curve is steep,

• A)increased aggregate demand will not lead to higher prices.
• B)greater demand for labor will not cause significant wage increases.
• C)business firms are probably producing near capacity.
• D)All of these responses are correct.

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Definitions:

Numerator

The top number in a fraction, indicating how many parts of a whole are being considered.

Two-tailed Test

A statistical test in which the critical area for rejection of the null hypothesis is on both sides of the distribution.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how far each number in the set is from the mean.

Significantly Less

A statistical term used to indicate that one set of data is considerably lower than another with a level of statistical significance.