When the Aggregate Supply Curve Is ________ Any Increase in the Price

question 115

Multiple Choice

When the aggregate supply curve is ________ any increase in the price level will not cause an increase in aggregate output.

• A) horizontal
• B) vertical
• C) upward sloping
• D) downward sloping

---

Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Tariff Revenue

The income earned by a government from imposing taxes on imported goods.

Import Quota

An import quota is a government-imposed limit on the quantity or value of goods that can be imported into a country.

Regional Trading Bloc

A group of countries within a geographical region that protect themselves from imports from non-members through tariffs and quotas.