If the Aggregate Supply Curve Is Horizontal

question 165

Multiple Choice

If the aggregate supply curve is horizontal,

• A)there are unemployed resources.
• B)the economy is inside the production possibilities frontier.
• C)it is possible to increase output,without driving up prices,by putting unemployed resources to work.
• D)All of the choices are correct.

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Definitions:

Continental Shelf

The extended perimeter of each continent, which is submerged underwater, transitioning from the shore towards the deep ocean.

Numbered Features

This term does not correspond to a specific scientific concept and thus is considered not a valid key term.

Coral Reefs

Underwater ecosystems characterized by reef-building corals, which are colonies of tiny living animals found in marine waters that contain few nutrients.

Promote Growth

Activities or substances that encourage or stimulate development or enlargement.