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

question 57

Multiple Choice

If the short-run aggregate supply curve is horizontal, then the:

• A) classical dichotomy is satisfied.
• B) money supply cannot affect prices in the short run.
• C) money supply cannot affect output in the short run.
• D) money supply is irrelevant in the short run.

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Definitions:

Sampling Error

The error that occurs when a sample does not represent the entire population accurately.

Entire Population

Refers to all the individuals or units within a specified area or category, relevant in contexts like statistical analysis or policy implementation.

Religiosity

The extent of an individual's or group's religious beliefs, practices, and devotion.

Independent

A person or entity not affiliated with any political party, group, or other influencing body, often referred to in the context of voters or candidates.