If in the Short Run Prices Did Not Respond at All

question 57

Multiple Choice

If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would

• A)be vertical.
• B)be horizontal.
• C)slope up.
• D)slope down.

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Definitions:

Relevant Costs

All costs that vary with the consequence of a decision.

Irrelevant Costs

Costs that will not be affected by a decision and thus should not influence the decision-making process.

Touch Screen

An electronic visual display that can detect the presence and location of a touch within the display area, used for interaction.

Orders

Instructions to buy or sell securities or goods, often given to a broker or company.