Suppose a Shift in the Aggregate Demand Curve Causes Prices

question 47

Multiple Choice

Suppose a shift in the aggregate demand curve causes prices to increase a lot and real output to increase by a little.What does this suggest about the shape of short-run aggregate supply curve?  

• A) It is horizontal. 
• B) It is very steep. 
• C) It is vertical. 
• D) It is downward sloping.

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Definitions:

Central Developmental Task

A crucial challenge that must be met or mastered during a stage of development.

Initiative

The ability to assess and initiate things independently; often refers to taking charge, being proactive, or launching new projects.

Preschooler

A child who is in the age group that attends preschool, typically between the ages of 3 and 5 years old.

Regression

A defense mechanism in which the person adapts behavior that was comforting earlier in life to overcome the discomfort and insecurity of the present situation.