The Long-Run Aggregate Supply Curve Is Vertical

question 112

Multiple Choice

The long-run aggregate supply curve is vertical

• A)because the rate of inflation is steady in the long run.
• B)because resource prices eventually rise and fall with product prices.
• C)because product prices tend to increase at a faster rate than resource prices.
• D)only when the money supply increases at the same rate as real GDP.

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Definitions:

Developing Nations

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

Global Trade

The exchange of goods, services, and capital between countries and territories, overcoming geographical boundaries.

Billion People

A quantity representing a thousand million individuals, often used in demographics to indicate significant portions of the global population.

GDP Growth

The rate at which a country's Gross Domestic Product (GDP) increases over a certain period, reflecting the economic health and prosperity of the nation.