The Long-Run Aggregate Supply Curve Is

question 180

Multiple Choice

The long-run aggregate supply curve is

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

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Definitions:

Economy Experiencing

A term that may refer to the current state or conditions of an economy, including growth, recession, or stability, but does not represent a standard economic term.

Business Firms

Entities that engage in commercial, industrial, or professional activities, either for profit or non-profit objectives.

Unemployment Rate

The quantification of jobless individuals in the labor force who are earnestly seeking employment.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, often characterized by low unemployment.