If the Economy Is in the Vertical Portion of the AS Curve,what

question 123

Multiple Choice

If the economy is in the vertical portion of the AS curve,what will be the effect of an increase in the price level on output produced?

• A)Output will increase at a very rapid rate
• B)Output will not change
• C)Output will only slightly increase
• D)Output change cannot be predicted from information given

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Definitions:

Global Inequality

The uneven distribution of resources, wealth, opportunities, and power across countries and populations worldwide.

Trickle-down Economics

An economic theory that advocates reducing taxes on businesses and the wealthy in society as a means to stimulate business investment in the short term and benefit society at large in the long term.

Dependency Theory

A theory in international relations and economic development positing that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, perpetuating neocolonial dependency.

Capitalist Economic System

An economic system based on private ownership of the means of production and where prices, production, and distribution of goods are determined by competition in a free market.