The Relationship Between Sticky Input Prices and Flexible Output Prices

question 4

Multiple Choice

The relationship between sticky input prices and flexible output prices explains:

• A) the positive slope of the short-run aggregate supply curve.
• B) the vertical slope of the long-run aggregate supply curve.
• C) the negative slope of the short-run aggregate supply curve.
• D) the negative slope of the aggregate demand curve.
• E) the positive slope of both the short-run and long-run aggregate supply curves.

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Definitions:

Voltage Measurement

The process of determining the electrical potential difference between two points in an electric circuit.

Continuity

In electrical systems, the unbroken and complete path for current flow, crucial for the safe and effective operation of circuits.

Diode

A semiconductor device that allows current to flow in one direction only, commonly used for rectification or as a check valve in electrical circuits.

Circuit Resistance

The opposition to the flow of electric current within a circuit, measured in ohms, affecting the circuit's performance and power consumption.