Ask Question
BusinessBusiness
5 May, 20:33

Which of the following is true? Select one: a. If the economy is close to capacity, with resources almost fully employed, the AS curve will be flat b. If the economy is in a recession, with idle resources, the AS curve will be steep c. If the economy is at full capacity, then the AS curve will be vertical. d. None of the above

+5
Answers (1)
  1. 5 May, 20:44
    0
    Correct option is C.

    If the economy is at full capacity, then the AS curve will be vertical

    Explanation:

    The long-run aggregate supply curve is perfectly vertical, which reflects economists' belief that the changes in aggregate demand only cause a temporary change in an economy's total output. For the short-run aggregate supply, the quantity supplied increases as the price rises.

    The full capacity AS curve is a long-run AS curved and it is vertical as the potential output level is denoted by it with the fully employed resources.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is true? Select one: a. If the economy is close to capacity, with resources almost fully employed, the AS curve will ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The ability of a good or service to satisfy a human need best defines:
Answers (1)
How would the earth's water cycle be affected if a significant portion of the sun's rays were blocked by dust or other contaminants in the atmosphere? * ?
Answers (1)
Which career is likely to earn the highest salary?
Answers (1)
Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $45 to you. One of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands.
Answers (1)
Sargent Corporation bought equipment on January 1, 2021. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years.
Answers (1)
New Questions in Business
Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return rule to accept or reject projects. C0 C1 C2 C3 - $11,600 0 + $9,100 + $10,100 a.
Answers (1)
Your roommate is a better cook than you are, but you can clean more quickly than your roommate can. If your roommate did all the cooking and you did all the cleaning, would your chores take you more or less time than if you divided each task evenly?
Answers (2)
Tyler Toys has beginning inventory for the year of $19,600. During the year, Tyler purchases inventory for $233,000 and has cost of goods sold equal to $236,000. Tyler's ending inventory equals: Multiple Choice $19,800. $19,600. $16,600. $22,600.
Answers (1)
Larkspur, Inc. was opened on August 1 by Joe Larkspur. The following selected events and transactions occurred during August. Aug. 1 Invested $57,000 cash in the business in exchange for common stock.
Answers (1)
Which growth strategy is being used when a firm introduces a new product or service to a market segment that is currently not served by the firm?
Answers (1)
Home » Business » Which of the following is true? Select one: a. If the economy is close to capacity, with resources almost fully employed, the AS curve will be flat b. If the economy is in a recession, with idle resources, the AS curve will be steep c.
Sign Up Forgot Password?