In the Long Run,the Price Level in an Economy Is

question 75

Multiple Choice

In the long run,the price level in an economy is determined solely by:

• A)the long-run aggregate supply curve.
• B)the aggregate demand curve.
• C)the amount of cyclical unemployment in the economy.
• D)the short-run aggregate supply curve.
• E)the potential output level.

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Definitions:

Industrial Nations

Countries that have a developed industrial base and a significant level of economic activity in the manufacturing sector.

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and lower Human Development Index relative to other countries.

Illegal Immigration

The act of residing in a country without the legal permission of its government.

Complementary Inputs

Inputs that are used together in production, such that the decrease in the price of one input increases the demand for the other input.