If Resource Prices Are "Sticky" Downward and a Recessionary Gap

question 116

Multiple Choice

If resource prices are "sticky" downward and a recessionary gap develops,the short-run aggregate supply curve will:

• A)shift leftward to return the economy to its potential output.
• B)shift rightward to return the economy to its potential output.
• C)become a horizontal straight line.
• D)not shift rightward to return the economy to its potential output.
• E)become the long-run aggregate supply curve.

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Definitions:

Aging adults

Individuals in the later stage of life who experience changes in physical health, cognitive ability, and social roles as part of the aging process.

Western cultures

A term referring to societies that are based in the Western part of the world, primarily characterized by democratic values, individualism, and a capitalist economic system.

Age stereotyping

Preconceived notions and generalizations about individuals based solely on their age, which can lead to discrimination or biased treatment.

Elderly people

Individuals of an advanced age, often defined as persons in the age group of 65 years and above, considered in many societies as senior citizens.