The Horizontal Segment of the Aggregate Supply Curve

question 68

Multiple Choice

The horizontal segment of the aggregate supply curve:

• A) shows that real GDP can increase only by affecting the economy's price level.
• B) shows that real GDP can increase without affecting the economy's price level.
• C) depicts a positive relationship between real GDP and the price level.
• D) depicts a negative relationship between real GDP and the price level.
• E) marks the full-employment level of real GDP.

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Definitions:

Environment

The sum of all external conditions and influences affecting the life and development of an organism or population.

Cognitive Development

A field of study in neuroscience and psychology focusing on a child's development in terms of information processing, conceptual resources, perceptual skill, language learning, and other aspects of brain development.

Preoperational

The stage in Piaget's theory of cognitive development where children begin to engage in symbolic play but lack the ability to perform operations or use logical thinking.

Accommodation

In psychology, it refers to the cognitive process of revising existing cognitive schemas, perceptions, and understandings to make new information fit.