The Aggregate Supply Curve in the Long Run Is Vertical

question 174

True/False

The aggregate supply curve in the long run is vertical because wages and other input prices respond completely to a change in the price level.

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Definitions:

Calendar Days

The consecutive days on a calendar, including all weekdays and weekend days.

Without Recourse

A term indicating that the seller of an asset is not liable to the buyer for any defects or non-performance.

Indorses

A party who transfers their rights in a negotiable instrument to another party by signing the back of the instrument.

Honor the Check

When a bank accepts and processes a check for payment from the account of the payer, ensuring the transfer of the stated amount to the payee.