The Long-Run Aggregate Supply Curve Is Vertical

question 197

Multiple Choice

The long-run aggregate supply curve is vertical:

• A)because the rate of inflation is steady in the long run.
• B)because resource prices eventually catch up with product prices.
• C)because product prices always increase at a faster rate than resource prices.
• D)only when the money supply increases at the same rate as real GDP.

---

Definitions:

Observer Bias

A form of bias occurring when researchers' expectations influence their interpretation of participants' behaviors or outcomes of a study.

Sample Bias

occurs when a sample is collected in such a way that some members of the intended population are less likely to be included than others, leading to skewed results or conclusions.

Phi Phenomenon

An optical illusion in which stationary objects shown in rapid succession, such as flashing lights, appear to be moving.

Individualistic Cultures

Cultures that emphasize personal achievements and rights, prioritize individual goals over group goals, and value self-reliance and independence.