Which of the Following Is True of Aggregate Supply in the Long

question 142

Multiple Choice

Which of the following is true of aggregate supply in the long run?

• A)Nominal wages and output prices are both fixed.
• B)Nominal wages are fixed but output prices can vary.
• C)Output prices are fixed.
• D)Nominal wages are fully responsive to changes in the price level.

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Definitions:

Object Permanence

The understanding that objects continue to exist outside of sight.

Dishabituation

The recovery of attention after habituation; signifies that person recognizes a new stimulus.

Accommodation

In Piaget’s theory, the process by which schemas are modified or new schemas created in light of experience.

Sensory Awareness

The recognition and interpretation of sensory stimuli based primarily on touch, sight, sound, taste, and smell.