In the globalized AS/AD model, the world supply curve is:
A)horizontal.
B)downward-sloping.
C)vertical.
D)upward-sloping.

Question

Quizplus · Accepted Answer

In the globalized AS/AD (Aggregate Supply/Aggregate Demand) model, the world supply curve is considered horizontal, reflecting the idea that at the global level, there is enough spare capacity to supply goods at a constant price level, regardless of changes in demand.

In the Globalized AS/AD Model, the World Supply Curve Is