-The horizontal short-run aggregate supply (SRAS1) expresses the idea that
A) the price level is dependent on the output level in the short run.
B) the output level is independent of the price level in the short run.
C) the price level is independent of the output level in the long run.
D) potential output is fixed in the short run.
E) firms will supply the output demanded at the fixed price level in the short run.
Correct Answer:
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Q5: Potential output refers to the amount of
Q6: Because decreases in the price level increase
Q7: The aggregate demand curve shows the relationship
Q8: When all prices rise in equal proportion,including
Q9: The level of a country's potential output
Q11: The LRAS curve is drawn as a
Q12: The short-run aggregate supply curve is a
Q13: A country's potential output depends on each
Q14: The downward shift in the short-run aggregate
Q15: A leftward shift in the LRAS curve
A)
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