When the Long-Run Aggregate Supply Curve Is Drawn as a Vertical

question 70

Multiple Choice

When the long-run aggregate supply curve is drawn as a vertical line, the theorist is assuming that

• A) the economy tends to move toward full employment in the long run.
• B) the economy tends to produce stable prices in the long run.
• C) the economy is stagnating at a low level of growth.
• D) shifting aggregate demand can change the level of employment in the long run.

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Definitions:

Papule

A small, raised, solid pimple or swelling on the skin, often forming part of a rash.

Flat Lesion

A skin change that is level with the surrounding skin and cannot be felt; it is observed rather than felt.

Different Pigmentation

Variations in skin color among individuals due to differences in melanin production and distribution.

Macule

A flat, distinct, discolored area of the skin smaller than 1 cm in diameter, not involving any change in the thickness or texture of the skin.