In the accompanying graph, which line might represent an immediate-short-run aggregate supply curve?
A) 1
B) 2
C) 3
D) 4

Name: In the accompanying graph, which line might represent an immediate-short-run aggregate supply curve? A) 1 B) 2 C) 3 D) 4
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Question

In the accompanying graph, which line might represent an immediate-short-run aggregate supply curve?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

Line 2 represents an immediate-short-run aggregate supply curve because it is a horizontal line, indicating that in the short-run, changes in demand have no effect on the price level.

In the Accompanying Graph, Which Line Might Represent an Immediate-Short-Run