If the Short-Run Aggregate Supply Curve Is Horizontal, Then Changes

question 110

Multiple Choice

If the short-run aggregate supply curve is horizontal, then changes in aggregate demand affect:

• A) level of output but not prices.
• B) prices but not level of output.
• C) both prices and level of output.
• D) neither prices nor level of output.

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Definitions:

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A group of people living in the same place or having a particular characteristic in common, often sharing a sense of identity and belonging.

Social Development

The process by which individuals acquire the values, behaviors, and knowledge necessary to function effectively in society.

Macro Level

a wide-scale approach to understanding systems or phenomena, often involving society or economies as a whole.

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Comprehensive programs or actions designed to address significant issues affecting large populations or communities.