The Relationship Between Sticky Input Prices and Flexible Output Prices

question 4

Multiple Choice

The relationship between sticky input prices and flexible output prices explains:

• A) the positive slope of the short-run aggregate supply curve.
• B) the vertical slope of the long-run aggregate supply curve.
• C) the negative slope of the short-run aggregate supply curve.
• D) the negative slope of the aggregate demand curve.
• E) the positive slope of both the short-run and long-run aggregate supply curves.

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Definitions:

Ampere-Turns

A basic unit for measurement of magnetism. The product of number of turns of wire times current flow.

Electromagnet

A type of magnet in which the magnetic field is produced by an electric current, typically wrapping a wire around a ferromagnetic core, which can be turned on and off with the current.

Proportional

A relationship between two quantities where a change in one results in a corresponding change in the other, often depicted mathematically by a constant ratio.

Compass Needle

A magnetized pointer free to align itself with Earth's magnetic field, used for navigation.