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:

Acid

A substance that is a hydrogen ion (proton) donor; acids unite with bases to form salts. Compare with base.

Atomic Mass

The mass of an atom expressed in atomic mass units (amu), essentially equivalent to the number of protons and neutrons in the nucleus.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting the nucleus.

Amu

Atomic Mass Unit, a standard unit of mass that quantifies mass on an atomic or molecular scale.