Which of These Is Assumed to Be Constant Along an Aggregate

question 21

Multiple Choice

Which of these is assumed to be constant along an aggregate supply curve?

• A)The price level in an economy
• B)The exchange rate between the domestic and a foreign currency
• C)The state of technology used in production
• D)The unemployment rate
• E)The real GDP

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Definitions:

Trade Restrictions

Regulations imposed by governments to limit the free exchange of goods and services across borders, including tariffs, quotas, and embargoes.

Specific Tariff

A specific tariff is a fixed fee imposed by a government on each unit of imported goods, based on quantity rather than value.

Lump-Sum Tax

A fixed amount of tax that an individual or business is required to pay, regardless of income or transaction value.