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The Short-Run Aggregate Supply Curve Is Relatively Flat Because

Question 3

Multiple Choice

The short-run aggregate supply curve is relatively flat because


A) in the short run, prices are flexible but output is equal to potential output.
B) in the long run, prices are flexible but output is equal to potential output.
C) in the short run, prices do not change very much but output may be above, below, or equal to potential output.
D) in the long run, prices are fixed and output is equal to potential output.

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