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Why Is the Aggregate Supply Curve Vertical in the Long

question 8

Essay

Why is the aggregate supply curve vertical in the long run and horizontal in the short run?


Definitions:

Register Securities

The process of recording and maintaining financial securities with a regulatory body, often required for securities to be legally sold to the public.

Average Investor

An individual or entity that makes investment decisions based on typical financial goals and risk tolerance, often represented as a general public member.

Investment Contracts

Financial contracts that typically denote a type of investment security, entitling the investor to specific returns.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, to protect investors against malpractice.

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