In the AD-AS Model, When the Short-Run Aggregate Supply (SAS)

question 47

Multiple Choice

In the AD-AS model, when the short-run aggregate supply (SAS) curve is horizontal, it means that

• A) in the short run, aggregate supply is equal to the aggregate demand.
• B) in the short run, producers produce whatever quantity is demanded.
• C) in the short run, output is fixed.
• D) in the short run, price will rise as output increases.

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