If the Short-Run Aggregate Supply Curve Is Horizontal, an Increase

question 85

Multiple Choice

If the short-run aggregate supply curve is horizontal, an increase in union aggressiveness that pushes wages and prices up will result in ______ prices and ______ output in the short run.

• A) higher; lower
• B) lower; higher
• C) higher; higher
• D) lower; lower

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Definitions:

Diethylstilbestrol

A synthetic estrogen previously prescribed to prevent miscarriages and pregnancy complications, later found to cause health issues.

Teratogens

Agents that can cause congenital abnormalities or increase the incidence of an anomaly in a fetus when a mother is exposed during pregnancy.

Blastocyst

An early stage of embryonic development characterized by a fluid-filled sphere made up of 50-150 cells, occurring before implantation into the uterine lining.

Placenta

An organ in pregnant female mammals that nourishes and maintains the fetus through the umbilical cord.