Asked by
Jabes37 Gonzalez
on Dec 17, 2024
Verified
Refer to Figure 33-3. Starting from point A and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a
A) falling price level and a falling level of output, as the economy moves to point C.
B) rising price level and a falling level of output, as the economy moves to point B.
C) falling price level and a rising level of output, as the economy moves to point B.
D) rising price level and a rising level of output, as the economy moves to point C.
Short-Run Aggregate-Supply Curve
A graphical representation that shows the relationship between the total production of goods and services and the price level for those goods and services in the short-term.
Price Level
An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a reference point.
Output
The total quantity of goods and services produced by an economic system.
- Study the impact of fluctuations in the total demand and supply on the economy's course towards a steady state over time.
Verified Answer
KE
Learning Objectives
- Study the impact of fluctuations in the total demand and supply on the economy's course towards a steady state over time.