The Long-Run Aggregate Supply Curve Is ________,While the Long-Run Phillips

question 167

Multiple Choice

The long-run aggregate supply curve is ________,while the long-run Phillips curve is ________.

• A)positively sloped; negatively sloped
• B)vertical; negatively sloped
• C)vertical; also vertical
• D)positively sloped; positively sloped

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Definitions:

Excess Demand

A situation where the quantity demanded of a product or service exceeds the quantity supplied at a given price.

Quantity Demanded

The amount of a good or service that buyers are willing and able to purchase at a specific price, holding all other factors constant.

Supply Pizza

Represents the total quantities of pizza that sellers are willing and able to provide at various prices within a given market.

Excess Supply

Excess supply, also known as surplus, occurs when the quantity of a good or service offered for sale exceeds the quantity demanded at the current price.