What Does the Coefficient a in the New Classical Expression

question 42

Multiple Choice

What does the coefficient a in the new classical expression for short-run aggregate supply represent?

• A) the full employment level of output
• B) the price level in the previous period
• C) how much output responds when the actual price level differs from the expected price level
• D) how much the price level responds when the actual level of output differs from the full-employment level of output

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Definitions:

Lower Explosion Limit (LEL)

The lowest concentration of a particular gas or vapor in air that can produce a flash of fire in presence of an ignition source.

Propagate

To reproduce, spread, or increase in number, often used in the context of plants (via seeds or cuttings) and ideas or information.

Upper Explosion Limit (UEL)

The highest concentration of vapor in air above which propagation of flame does not occur on contact with a source of ignition.

Thermobaric Bomb

A type of explosive weapon that uses oxygen from the surrounding air to generate a high-temperature explosion, producing a blast wave of significant duration.