Suppose We Observe Rising Nominal GDP, a Rising Price Level

question 280

Multiple Choice

Suppose we observe rising nominal GDP, a rising price level, and constant unemployment as a result of an increase in aggregate demand. We would conclude that the aggregate supply curve is

• A) upward sloping.
• B) downward sloping.
• C) vertical.
• D) horizontal.

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Definitions:

Hydrogens

Atoms that consist of one proton and, in most cases, one electron, forming the most abundant chemical substance in the universe.

Equilibrium Constant

A number that expresses the relationship between the concentrations of products and reactants of a reaction at equilibrium under given conditions.

ΔG°

The standard Gibbs free energy change for a reaction, indicating the spontaneity of the process under standard conditions.

Corresponding K

Often refers to the equilibrium constant of a corresponding reaction, indicative of the position of equilibrium.