The Long-Run Aggregate Supply Curve Is the Relationship Between the Quantity

question 179

Multiple Choice

The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ___________when ___________ .

• A) the price level; real GDP equals potential GDP
• B) the price level; real GDP equals nominal GDP
• C) real GDP demanded; the price level does not change
• D) real GDP demanded; the wage rate is constant

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Definitions:

Foreign Products

Goods or services produced in one country and sold in another, outside of their country of origin.

Duties

Taxes imposed on the import and export of goods.

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.

Imported Beef

Beef that is brought into a country from another country for sale.