Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A) Long-run aggregate supply is independent of the price level.
• B) Short-run aggregate supply is independent of the price level.
• C) Long-run aggregate supply is positively related to the price level.
• D) Short-run aggregate supply is inversely related to the price level.
• E) Long-run aggregate supply is inversely related to the price level.

---

Definitions:

Short-Term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle, whichever is longer.

Long-Term Investments

Investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer.

Short-Term Price Differences

Variations in prices or costs that occur over a short period, often related to fluctuations in demand, supply, or market conditions.

Fair Value

An estimate of the market value of an asset or liability, based on current market prices or valuations.