Suppose That Wages and Prices Are Quite Flexible,so That the Short-Run

question 10

Multiple Choice

Suppose that wages and prices are quite flexible,so that the short-run aggregate supply curve is steep.In that case,________.

• A)policies to stabilize inflation are probably needed more than policies to stabilize economic activity
• B)supply shocks will destabilize inflation,but have minimal impact on output
• C)demand shocks will destabilize output,but have minimal impact on inflation
• D)all of the above
• E)none of the above

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Definitions:

Epicardium

A thin layer of tissue that forms the outermost part of the heart's wall.

Depolarization

The process in which the resting membrane potential of a cell becomes less negative, making the cell more likely to fire an action potential.

Pacemaker Cells

Specialized heart cells that generate and regulate the heart's rhythm.

Afterload

The force the heart must overcome to pump blood during the contraction phase.