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.

---

Definitions:

Social Mobility Belief System

Belief that intergroup boundaries are permeable. Thus, it is possible for someone to pass from a lower-status into a higher-status group to improve social identity.

Subordinate Groups

Groups with less power, less access to resources, and lower social status compared to dominant groups within a society.

Higher-Status Groups

Refer to social groups that are perceived to have greater prestige, power, or access to resources compared to other groups.

Social Mobility Belief System

The set of beliefs related to the perceived fairness, possibility, and mechanisms of moving within a society's hierarchical structure.