In the Long-Run, the Quantity of Real GDP Supplied Increases

question 263

True/False

In the long-run, the quantity of real GDP supplied increases when the price level increases.

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Definitions:

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, commodity, or service.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from high prices.