An Aggregate Supply Curve That Is Either Horizontal or Upward

question 34

Multiple Choice

An aggregate supply curve that is either horizontal or upward sloping,depending on whether the absolute price level increases as firms produce more output is called:

• A)short-run aggregate supply curve.
• B)long-run aggregate supply curve.
• C)potential GDP.
• D)NAIRU.

---

Definitions:

Fair Value Option

An accounting choice that allows companies to measure specific financial assets and liabilities at their fair values.

Defective Product Returns

Products that are returned to the manufacturer or seller due to their failure to meet quality or functionality standards.

Sales Returns

are goods returned by customers to the seller for a refund or credit, representing a reversal of sales previously recorded.

Journal Entry

A record in the books of accounts that reflects the details of a financial transaction, including the accounts affected, date, and amounts.