The Long-Run Aggregate Supply Curve Is

question 104

Multiple Choice

The long-run aggregate supply curve is

• A) horizontal at the full-employment price level.
• B) vertical at the full-employment level of real GDP.
• C) upward sloping because of the effects of price level changes on real GDP.
• D) the same as the short-run aggregate supply curve.

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Definitions:

Unrealized Profits

are profits that have been earned but not yet realized through a transaction, such as an increase in value of unsold stocks.

After-Tax Dollar Value

The amount of money left after federal, state, and other governmental taxes have been deducted.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Adjusted Net Income

Net income adjusted for specific expenses, revenues, gains, or losses to provide a clearer picture of operational performance.