The Long- Run Aggregate Supply Curve Is

question 91

Multiple Choice

The long- run aggregate supply curve is

• A)vertical.
• B)negatively sloped.
• C)almost flat.
• D)positively sloped at low levels of real GDP and vertical at high levels of real GDP.
• E)positively sloped but extremely steep.

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Definitions:

Unit Of Labor

A measure of labor input, often referred to as one hour of work by an employee or worker.

Law Of Diminishing Returns

An economic principle stating that if one factor of production is increased while others remain constant, the overall marginal returns will eventually decrease.

Average Output

The total output produced divided by the number of units of input, measuring the efficiency or productivity of production.

Diminishing Marginal Returns

The principle that as an additional unit of a factor of production is added to a fixed amount of other factors, the increase in output will eventually decrease.