The short-run aggregate supply curve is horizontal if A) ...

[09madisonrousseau09]

The short-run aggregate supply curve is horizontal if
 
  A) resources were fully utilized.
  B) there are unutilized resources in the economy.
  C) resources are perfectly adaptable between production processes.
  D) there are high inflation rates.

Question 2

Refer to the above figure. A surplus occurs if the government imposes
 
  A) a price floor at 60.
  B) a price floor at 20.
  C) a price ceiling at 60.
  D) a price ceiling at 20.

[mirabriestensky]

Answer to Question 1

B

Answer to Question 2

A

[09madisonrousseau09]

Wow, this really help

[JaynaD87]

Thanks for the timely response, appreciate it