The Shape of the Long-Run Aggregate Supply Curve Implies That

question 81

Multiple Choice

The shape of the long-run aggregate supply curve implies that, in the long run, _____.

• A) inflation and GDP are negatively related
• B) the rate of inflation is constant
• C) inflation increases faster than nominal wages
• D) output is inflation inelastic.

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Definitions:

Labor Day

An annual holiday celebrating the achievements of workers, observed on the first Monday in September in the United States.

Concrete

A construction material made from a mixture of cement, aggregates, water, and possibly additives, known for its high strength and durability.

Lumber

Timber that has been processed into beams and planks, a stage in the preparation for use as building material or other purposes.

Minor

An individual under the age of legal adulthood, typically under 18, who has limited legal rights and capacities.