The Long- Run Aggregate Supply Curve Is Vertical Because

question 117

Multiple Choice

The long- run aggregate supply curve is vertical because

• A) at full employment prices are stable.
• B) potential GDP is independent of the price level.
• C) there is no cyclical inflation.
• D) the money wage rate increases faster than the price level.

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Definitions:

Population Proportions

Population proportions represent the fraction of individuals in a population that belong to a specified category or exhibit a particular attribute.

Z-value

A measure of how many standard deviations an element is from the mean; often used in statistical analysis to determine significance levels.

Population Proportion

The fraction or percentage of a total population that exhibits a particular characteristic or attribute.

Random Sample

A sample drawn from a population where each member has an equal chance of being selected, aiming for fair representation.