The Long-Run Aggregate Supply Curve,according to the Classical Model

question 113

Multiple Choice

The long-run aggregate supply curve,according to the classical model,

• A)is vertical at full employment GDP.
• B)slopes gently upward.
• C)is horizontal at the equilibrium price level.
• D)may be downward sloping.
• E)slopes steeply upward.

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Definitions:

Situationist Argument

A viewpoint in psychology that suggests behavior is determined more by situations and external factors than by personal traits or characteristics.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Extraversion

A personality trait characterized by outgoingness, sociability, and a high level of activity and enthusiasm.