The Aggregate Supply Curve Relating the Price Level to Real

question 92

Multiple Choice

The aggregate supply curve relating the price level to real GDP has three distinguishing segments.Which one of the following indicates the segments?

• A)The horizontal segment reflects increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources.
• B)The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects increasing pressure on the price level as firms bid for resources.
• C)The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources.
• D)The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
• E)The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.

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Definitions:

Mutual Assent

An agreement between parties that is reached when all involved parties have a matching understanding and intention to be bound by the terms.

Agreement Standard

The established criteria or clauses that form the basis of a contractual agreement between parties.

Acceptance

In contract law, it is the act of agreeing to the terms of an offer, thus creating a binding contract.

Commercial Reasonableness

A legal standard that measures the fairness of business practices, actions, or decisions in a commercial context.