The Long-Run Aggregate Supply Curve Uses the Classical Assumptions That

question 61

Multiple Choice

The long-run aggregate supply curve uses the classical assumptions that all variables are _____ in the long run and that long-run equilibrium occurs at _____.

• A) flexible; full employment
• B) flexible; less than full employment
• C) fixed; less than full employment
• D) fixed; full employment

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Definitions:

Dollar Sales

The total revenue generated from goods or services sold, measured in dollar value.

Break-Even

The situation where overall costs are equivalent to overall revenues, resulting in neither gains nor losses.

Monthly

Referring to something that occurs, is measured, or is paid every month.

Dollar Sales

Total revenue generated from the sale of goods or services, expressed in dollars.