The aggregate supply curve of an economy:
a. is a downward-sloping straight line
b. is an upward-sloping curve.
c. is a vertical line parallel to the price axis.
d. is a horizontal line parallel to the output axis.
e. is a ray from the origin.
b
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Which of the following is likely to shift the credit demand curve of a computer manufacturer to the left, assuming all else equal?
A) An increase in the scale of production B) A decrease in the scale of production C) An increase in the real interest rate D) A decrease in the real interest rate
The principle of comparative advantage
A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.