Multiple Choice
What happens to aggregate supply when production costs adjust completely to price increases?
A) Both equilibrium output and prices increase
B) Only prices rise;equilibrium output remains fixed
C) Only equilibrium output rises;equilibrium prices remain fixed
D) Equilibrium output falls while prices rise
E) Both equilibrium output and prices remain fixed
Correct Answer:
Verified
Correct Answer:
Verified
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Q11: Assume that the AD curve is held
Q12: Which of the following will cause net
Q13: When the foreign price level falls, domestic
Q14: Identify the correct statement.<br>A)As domestic income rises,
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Q17: The long-run aggregate supply of an economy
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Q19: Which of the following is not held
Q20: The figure given below represents the equilibrium