An Industry with a Horizontal Long-Run Supply Curve Is Called

question 257

Multiple Choice

An industry with a horizontal long-run supply curve is called a(n) ________ industry.

• A) constant-cost
• B) decreasing-cost
• C) increasing-cost
• D) decreasing-profit

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Definitions:

Fiscal Policy

Government policies regarding taxation and spending that are aimed at influencing a country's economic conditions.

Supply-Side Effect

Economic effects that result from changes in production capacity and costs, influencing the aggregate supply in the economy.

Tax Rates

The percentage at which an individual or corporation is taxed, applied to income or transactions.

Potential GDP

The highest level of economic output that an economy can sustain over the long term without increasing inflation.