In the Long Run, Aggregate Supply

question 2

Multiple Choice

In the long run, aggregate supply:

• A) is dictated by the fixed costs of inputs.
• B) is fixed.
• C) is determined by the prices of final goods and services.
• D) steadily increases.

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Definitions:

Problem Recognition

The initial stage of the buying process where a consumer identifies a need or problem that can be satisfied by purchasing a product or service.

Cognitive Dissonance

The mental unease felt by a person when they simultaneously possess conflicting beliefs, ideas, or values.

Internal Search

The process by which consumers use their own memory and knowledge to identify possible choices in purchasing decisions.

External Search

The process consumers engage in by seeking information from sources outside of their personal knowledge base to make informed purchase decisions.