Along the Aggregate Supply Curve

question 33

Multiple Choice

Along the aggregate supply curve

• A)the horizontal part represents a situation where the economy is operating above full employment levels.
• B)inflation would be a primary concern along the horizontal part of the aggregate supply curve.
• C)idle resources,such as labor and capital,would be a feature of the vertical section of the aggregate supply curve.
• D)the horizontal section of the aggregate supply curve represents the limit of production.
• E)the middle,upward-sloping part of the aggregate supply curve would be associated with a growing economy that experienced increased prices from resources that are becoming relatively scarce.

---

Definitions:

Persuasive

The ability to convince others to agree with a viewpoint, idea, or course of action through reasoning and argumentation.

Availability

The state of being able to be used or obtained; readiness for use.

Representativeness

A cognitive bias in decision making where the likelihood of an occurrence is evaluated based on how similar it is to stereotypes or typical cases.

Anchoring Bias

A mental shortcut in which a person gives disproportionate weight to the first piece of information they receive (known as the "anchor") during decision-making processes.