Which of the Following Is True About the Long- Run

question 13

Multiple Choice

Which of the following is true about the long- run aggregate supply curve?

• A)It is vertical at the level of potential GDP.
• B)It does not shift in response to temporary changes in aggregate demand.
• C)It shows the relationship between the price level and real GDP when the economy is at full employment.
• D)All of the above are true.

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Definitions:

Insurance Fraud

The act of deceiving an insurance provider with the aim to receive compensation or benefits unjustly.

Theft

The act of stealing; taking someone else's property without permission or legal right.

Insurance Policy

A contract wherein an insurer agrees to compensate the insured for specified losses, damages, illness, or death in return for premiums paid.

Co-insurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, promoting shared risk between the insurer and the insured.