The Long- Run Aggregate Supply Curve Is

question 216

Multiple Choice

The long- run aggregate supply curve is

• A) the same as the short- run aggregate supply curve.
• B) horizontal at the full employment price level.
• C) vertical at the full employment level of real GDP.
• D) upward sloping because of the effects of price level changes on real GDP.

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Definitions:

Expectancy-Value Theory

A psychological theory that explains how the motivation to engage in a behavior is influenced by the individual's expectation of success and the value they place on the success.

Motivated Behaviors

Actions that are initiated, guided, and maintained to fulfill a need or to achieve a particular goal.

Previous Goals

Objectives or desired outcomes that an individual or group has aimed for in the past.

Expectancy-Value Theory

A psychological theory which explains motivation and behavior as a combination of an individual's beliefs about the likelihood of success and the value they place on that success.