The Curve That Is Sometimes Called the "Long-Run Aggregate Supply

question 29

Multiple Choice

The curve that is sometimes called the "long-run aggregate supply curve" (vertical Y*) relates the aggregate price level to real GDP

• A)in the short run.
• B)when wages are in adjustment but prices are unstable.
• C)when national income is at less than potential income.
• D)when technology is allowed to change.
• E)after factor prices have fully adjusted to eliminate output gaps.