The Vertical Portion of the Aggregate Supply Curve Shows That

question 81

Multiple Choice

The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:

• A) not alter the economy's full-employment real GDP.
• B) increase the economy's full-employment real GDP.
• C) reduce the quantity of goods and services purchasers will demand.
• D) improve the overall efficiency of resource use.

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Definitions:

Final and Definite Award

In arbitration, a conclusive decision given by an arbitrator that resolves the dispute and is binding on all parties.

Arbitrator's Bias

A situation in which an arbitrator, who is supposed to act as an impartial third-party decision-maker in a dispute resolution process, shows unfair bias towards one of the parties.

Counterclaim

A claim made by the defendant against the plaintiff that is filed along with the defendant’s answer.

Negligence

Neglecting to uphold the level of care that a reasonably careful individual would have maintained under comparable circumstances, resulting in injury or damage.