If All Prices Are Stuck at a Predetermined Level, Then

question 21

Multiple Choice

If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, this curve:

• A) is horizontal.
• B) is vertical.
• C) slopes upward and to the right.
• D) slopes downward and to the right.

---

Definitions:

Hypothesis

A hypothesis is a proposed explanation for a phenomenon, serving as a starting point for further investigation to be tested through experimentation or observation.

Investigative Method

A systematic approach employed in various disciplines to explore and gather facts or information about a particular subject, phenomenon, or aspect of study.

Resources

Assets, material or nonmaterial, that individuals or groups have access to and can use for support, survival, or to achieve goals.

Ethics

A branch of philosophy that deals with questions about morality and the principles that govern right and wrong conduct.