Because the Long Run Aggregate Supply Curve Is Vertical at the Full

question 173

Multiple Choice

Because the long run aggregate supply curve is vertical at the full employment level of GDP, then this would imply that the long run aggregate supply curve:

• A) decreases as the price level increases.
• B) is independent of changes in the price level.
• C) shifts to the right when the price level increases.
• D) increases as the price level increases.

---

Definitions:

Future Cash Flows

Future cash flows refer to the projected inflows and outflows of cash that a company expects from its operations over a future period.

Credit Standing

The assessment of a borrower's financial health and ability to repay debt, typically influenced by credit history and financial behavior.

Materiality

An accounting and auditing principle referring to the significance of transactions or information that could influence the decision-making of users of financial statements.

Financial Information

Data about a company's financial activities, including income, expenses, assets, liabilities, and equity, used by stakeholders to make informed decisions.