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:

Scholarships

Financial support awarded to students based on a variety of criteria, such as academic achievement or financial need, to help cover education-related expenses.

Inflation

The speed at which the overall cost of goods and services increases, in turn diminishing the buying power.

Present Value

The now value of a future cash flow stream or lump sum, discounted by a chosen rate of return.