The Aggregate Supply Curve Illustrates That the

question 36

Multiple Choice

The aggregate supply curve illustrates that the

• A)higher the price level,the greater the quantity of real GDP supplied.
• B)higher the price level,the smaller the quantity of real GDP supplied.
• C)aggregate demand curve is not needed to determine the aggregate price level.
• D)price level does not affect the quantity of real GDP supplied.
• E)amount of potential GDP increases when the price level rises.

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Definitions:

Instrumental Values

Core beliefs or standards that guide how we achieve goals or desired ends, such as honesty, responsibility, and ambition.

Desired Ends

Specific goals or outcomes that individuals or organizations aim to achieve through their actions and strategies.

Utilitarian View

An ethical philosophy that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Greatest Good

A principle often associated with utilitarianism, focusing on actions that aim to maximize happiness or benefit for the greatest number of people.