In the Extended Aggregate Demand-Aggregate Supply Model

question 33

Multiple Choice

In the extended aggregate demand-aggregate supply model,

• A) long-run equilibrium occurs wherever the aggregate demand curve intersects the short-run aggregate supply curve.
• B) the long-run aggregate supply curve is horizontal.
• C) the level of real output is the same in the long run regardless of the location of the aggregate demand curve.
• D) the short-run aggregate supply curve is downsloping.

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Definitions:

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A declaration that confirms two expressions are identical, often including at least one variable.

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The mathematical process of breaking down an expression into a product of its simpler factors.

Factoring

The process of breaking down an equation or number into its constituent parts, or 'factors', that multiply together to form the original number or equation.

Equation

A declaration in the field of mathematics that two expressions possess equal value.