Gradual Adjustment of Prices and Wages to an Increase in the Aggregate

question 12

Multiple Choice

Gradual adjustment of prices and wages to an increase in the aggregate demand curve implies that the aggregate supply curve is:

• A) horizontal.
• B) vertical.
• C) upward sloping but not vertical.
• D) downward sloping.

---

Definitions:

Sensory Neurons

Neurons that are responsible for converting external stimuli from the environment into internal electrical impulses.

Myelin Sheath

Insulation around some nerve cell axons that allows nerve impulses to move more quickly through the axons.

Axons

Extended, thin extensions of neurons that convey electrical signals from the neuron's cell body outward.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.