An economy that is primarily agricultural will have a _____ aggregate _____ curve.
A)horizontal; supply
B)nearly vertical; supply
C)horizontal; demand
D)nearly vertical; demand

Question

Quizplus · Accepted Answer

An economy that is primarily agricultural will have a nearly vertical aggregate supply curve. This is because the supply of agricultural products is heavily influenced by factors such as weather, natural disasters, and pests, which can have a significant impact on the amount produced. As a result, changes in price are unlikely to significantly affect the quantity supplied in the short term.

An Economy That Is Primarily Agricultural Will Have a _____