-Identify the 3 Curves in the Above Figure

question 361

Multiple Choice

-Identify the 3 curves in the above figure.

• A) (1) is long-run aggregate supply, (2) is short-run aggregate supply, (3) is aggregate demand.
• B) (1) is aggregate demand, (2) is short-run aggregate supply, (3) is long-run aggregate supply.
• C) (1) is short-run aggregate supply, (2) is long-run aggregate supply, (3) is aggregate demand.
• D) (1) is long-run aggregate supply, (2) is aggregate demand, (3) is short-run aggregate supply.

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Definitions:

Demand Constraint

A limitation in operations management that affects the maximum demand that can be satisfied given current resources.

Double-subscripted Variables

Variables identified by two subscripts, commonly used in mathematical and scientific contexts to denote elements in matrices, tables, or double-entry arrays.

Capacity Constraint

A limitation on the resources available for production, such as time, labor, or materials, which can affect the maximum output levels.

Double-subscripted Variables

Variables in mathematical modeling that are indexed by two sets, often used to represent the elements in a matrix or a two-dimensional array.