The Long-Run Aggregate Supply Curve Shows the Output Level That

question 93

Multiple Choice

The long-run aggregate supply curve shows the output level that an economy can produce when:

• A)firms adjust quantity rather than price.
• B)capital is fully employed.
• C)labor is fully employed.
• D)both capital and labor are fully employed.

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Definitions:

Hibernate

A state of inactivity and metabolic depression in animals during winter, allowing survival through periods of reduced food availability.

Cold-blooded

Refers to organisms, such as reptiles and fish, that do not regulate their body temperature internally but rely on external sources.

Metabolism

The set of life-sustaining chemical reactions in organisms to convert food to energy, maintain cellular structure, and grow.

Brain-Wave Patterns

The fluctuations in electrical activity within the brain, as detected by electroencephalography, which differ during various states of consciousness.