The Long-Run Aggregate Supply Curve Shows the

question 181

Multiple Choice

The long-run aggregate supply curve shows the

• A) maximum GDP the nation will ever produce.
• B) full-employment level of real GDP.
• C) level of real GDP associated with a constant price level.
• D) level of output at which real GDP equals nominal GDP.

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Definitions:

Ethical

Ethical refers to behavior or decisions guided by a set of moral principles and values, often relating to what is right and wrong.

Long Run

Refers to a period of time sufficient for all factors of production and costs to become adjustable, often used in economic analysis to predict future trends.

Risk-Taking

The act of undertaking actions or making decisions that involve the possibility of facing undesirable outcomes.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit, characterized by innovation, strategy, and risk-taking.