The Long-Run Aggregate Supply Curve Is

question 17

Multiple Choice

The long-run aggregate supply curve is

• A) vertical at the level of full-employment output.
• B) horizontal at the going-price level.
• C) illustrating a positive relationship between price and output.
• D) illustrating a negative relationship between price and output.
• E) the same as the short-run aggregate supply curve.

---

Definitions:

Regression Line

A statistical line of best fit that describes the relationship between one dependent variable and one or more independent variables.

Linear Regression Model

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, assuming a linear relationship.

Slope

Refers to the measure of the steepness, incline, or grade of a line, indicating the rate at which the dependent variable changes over the independent variable.

Residuals

Differences between observed and predicted values in a statistical model, representing unexplained variation.