The Aggregate Supply Curve Relating the Price Level to Real

question 164

Multiple Choice

The aggregate supply curve relating the price level to real GDP has three distinguishing segments.Which one of the following indicates the segments?

• A) The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources.
• B) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources.
• C) The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources.
• D) The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
• E) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.

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Definitions:

Social Movement

A collective effort by a large group of people to achieve a specific goal, often related to social change or reform.

Cyclical Theory

A theory that suggests societal events and stages repeat themselves in cycles within a historical context.

Social Change

The transformation of cultural, social, economic, or political structures over time, which may result from behavior, products, institutions, or technologies.

Changing Seasons

The division of the year based on shifts in weather, ecology, and hours of daylight, resulting from the Earth's orbit around the Sun and its axial tilt.