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.

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Definitions:

Formal Budget Process

The systematic procedures followed by organizations or governments to estimate revenues, plan expenditures, and manage finances.

Economic Report

A document that provides information about the economic performance, policies, and conditions of a country, region, company, or sector.

National Debt

The total amount of money that a country's government has borrowed, through various means.

Federal Outlays

The total spending by the federal government, including on defense, education, health services, and social security.