An Upward Sloping Short-Run Aggregate Supply Curve Suggests That

question 150

Multiple Choice

An upward sloping short-run aggregate supply curve suggests that

• A) real GDP is determined by aggregate supply.
• B) prices and wages are completely inflexible.
• C) prices and wages are completely flexible.
• D) prices and wages adjust in part to short-run demand changes.

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Definitions:

Dependent Variable

In a study or experiment, this is the variable anticipated to vary as a result of alterations in the independent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Observed Value

The actual value measured or recorded during an experiment or survey.

Dependent Variable

In an experiment, the dependent variable is the variable that is being tested and measured, and is 'dependent' on the independent variable.