In the Classical Model Where Aggregate Supply Is Vertical with Respect

question 83

Multiple Choice

In the classical model where aggregate supply is vertical with respect to the price level,an increase (shift) in aggregate demand will yield

• A)a relatively large increase in output.
• B)an equal change in output.
• C)a relatively large increase in the price level.
• D)a relatively small change in the price level.

---

Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Transfer of Ownership

The legal process by which the title of a property or asset is moved from one party to another.

Franchise

A business model where one party (the franchisor) grants another party (the franchisee) the rights to use its trademark and business systems and processes to produce and market goods or services according to certain specifications.

Partnership

A legal form of business operation between two or more individuals who share management and profits.