Refer to the Graph Above

question 41

Multiple Choice

Refer to the graph above. If Q_f is potential GDP, wages and prices are flexible, then the long-run aggregate supply curve will be:

• A) AS₂
• B) AS₁
• C) A vertical line at Q_f
• D) A vertical line at Q₁

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Definitions:

Just Noticeable Difference

The minimal change in stimulation that can reliably be perceived as a difference.

Stimulus Difference

The minimal change in a stimulus that can produce a just noticeable difference in sensory perception.

Absolute Threshold

The minimum quantity of physical energy required for an observer to detect a stimulus 50% of the time.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or unchanging stimuli over time.