A Vertical Long- Run Aggregate Supply Curve Indicates That

question 11

Multiple Choice

A vertical long- run aggregate supply curve indicates that

• A)an increase in the price level will increase technological change and economic growth.
• B)the long- run aggregate supply curve never shifts.
• C)an increase in the price level will permit the economy to achieve a higher level of output.
• D)output rates greater than the long- run output rate are unattainable.
• E)an increase in the price level will not expand an economy's output in the long run.

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Definitions:

Warranted

Describes an inference or argument such that the truth of the premises justifies or strongly supports confidently accepting the conclusion as very probably true, but not necessarily true.

Tautological

Pertaining to a statement that is true by necessity or by virtue of its logical form.

Natural Phenomena

Events or observable occurrences in the natural world, not produced by humans, that can be explained through scientific investigation.

Natural Science

The branch of science concerned with the description, prediction, and understanding of natural phenomena, based on empirical evidence from observation and experimentation.