The Economy's Aggregate Supply Curve Is Drawn Under Two Main

question 93

Multiple Choice

The economy's aggregate supply curve is drawn under two main assumptions.They are

• A)firms' unit costs are constant; prices of all factors of production are constant.
• B)firms' unit costs are constant; the state of technology is constant.
• C)firms will produce more output only if prices rise; technology improves only if prices rise.
• D)the prices of all factors of production are constant; the state of technology is constant.
• E)the prices of all factors of production are constant; productivity improves as the price level rises.

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Definitions:

College Costs

The total expenses associated with attending a college or university, which include tuition, room and board, books, and other fees.

Trend

A long-term direction or pattern in data, often observed in economic variables, stock market prices, or consumer behavior over time.

Panels

Groups of selected individuals brought together to discuss, test, or provide opinions on specific topics, products, or research questions.

Wage Inequality

The disparity in income received by workers, often highlighted by significant differences in wages across different sectors, regions, or demographic groups.