Many Economists Maintain That

question 65

Multiple Choice

Many economists maintain that

• A)the aggregate supply curve is nearly horizontal at low levels of real GDP.
• B)the aggregate supply curve is nearly vertical at very high levels of real GDP.
• C)any change in aggregate demand will have most of its effect on output when economic activity is low but on prices when the economy is near full employment.
• D)All of the above are correct.

---

Definitions:

Free On Board

A shipping term indicating that the seller bears the shipping costs and risk of loss until the goods reach the buyer’s specified location.

Origin Pricing

Pricing strategy based on the geographical location of a product's origin, considering the costs of transportation and tariffs.

Transportation Costs

Expenses associated with moving goods or services from one location to another, including fuel, labor, and maintenance.

FOB Origin Pricing

The “free on board” (FOB) price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (seller’s factory or warehouse).