In the Horizontal Segment of the Aggregate Supply Curve, When

question 38

Multiple Choice

In the horizontal segment of the aggregate supply curve, when GDP:

• A) increases, the price level rises.
• B) decreases, the price level falls.
• C) increases, the price level does not change.
• D) increases, the price level falls.

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Definitions:

Discouraged Worker

An individual who is not actively seeking employment due to a belief that no available jobs suit their skills or experience.

Job Search

The act of looking for employment, due to unemployment or dissatisfaction with a current position.

Contingent Worker

An employee who does not have a long-term employment agreement, often hired for temporary assignments.

Business Cycles

The natural rise and fall of economic growth that occurs over time, consisting of periods of expansion (growth) and contraction (recession) in an economy.