The Long-Run Aggregate Supply Curve Implies That

question 63

Multiple Choice

The long-run aggregate supply curve implies that:

• A) in?ation can be lowered by reducing aggregate supply.
• B) increases in aggregate demand will be in?ationary.
• C) aggregate demand needs to increase in order for the economy to grow.
• D) supply is highly responsive to changes in the price level.

---

Definitions:

Expedient Solutions

Expedient solutions are practical and quick responses to a problem, devised to bring about an immediate improvement or resolution.

Functional Conflict

A form of conflict that supports the goals of the group and improves its performance by encouraging constructive communication and problem solving.

Dysfunctional Conflict

A disagreement that leads to negative consequences, harming the group's performance, or interpersonal relationships.

Neutral Third Party

An unbiased individual or entity not directly involved in a situation or dispute, who may act as a mediator or arbitrator.