Which of the Following Is True About the Price Level

question 67

Multiple Choice

Which of the following is true about the price level and aggregate supply?

• A) The price level influences aggregate supply in both the long run and short run.
• B) The price level influences aggregate supply in the long run but not in the short run.
• C) The price level influences aggregate supply in the short run but not in the long run.
• D) The price level never impacts aggregate supply.
• E) There is no clear relationship between the price level and aggregate supply.

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Definitions:

Family Planning

The practice of controlling the number and spacing of offspring through the use of contraception or the knowledge of the reproductive cycle.

Economic Opportunities

Prospects or situations conducive to financial growth, employment, or investment.

Schooling

The process of providing or receiving instruction, especially at a school.

Life Expectancy

The average number of years that an individual is expected to live, based on statistical analysis of current mortality rates.