Consider the Following Equation Where a Is a Positive Number

question 132

Multiple Choice

Consider the following equation where a is a positive number: quantity of output supplied = natural rate of output + a (actual price level - expected price level) . What does this equation represent?

• A) an upward-sloping short-run aggregate-supply curve
• B) a vertical long-run supply curve
• C) a downward-sloping aggregate-demand curve
• D) an upward-sloping aggregate-demand curve

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