Which of the Following Is an Assumption of the Aggregate

question 17

Multiple Choice

Which of the following is an assumption of the aggregate demand-aggregate supply model?

• A)Capital stock cannot be varied in the short run.
• B)An economy is always at full-employment level in the short run.
• C)Producers are reluctant to change prices of their products even in the long run.
• D)Long-run aggregate supply curve slopes upward.

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Definitions:

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.