Economists Who View the AS Curve as Upward Sloping Believe

question 32

True/False

Economists who view the AS curve as upward sloping believe that Real GDP can only rise as a result of a rightward shift of the AS curve.

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Definitions:

Price-elastic

A characteristic of a good or service indicating a high sensitivity to changes in its price, where a small price change leads to a significant change in quantity demanded or supplied.

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to changes in price.

Substitutes

Pairs of goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good.

Related Diversification

Is used when a corporation believes it can achieve synergy among the various businesses that it owns.