The Long-Run Aggregate Supply Curve Is Vertical

question 134

Multiple Choice

The long-run aggregate supply curve is vertical

• A) because the rate of inflation is steady in the long run.
• B) because resource prices eventually rise and fall with product prices.
• C) because product prices tend to increase at a faster rate than resource prices.
• D) only when the money supply increases at the same rate as real GDP.

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Definitions:

Bloodstream

The flowing body fluid that circulates throughout the body via the circulatory system, carrying oxygen, nutrients, and hormones to various tissues and removing carbon dioxide and other wastes.

Psychological Influences

Factors that affect mental processes and behavior, including emotions, attitudes, thoughts, and social dynamics.

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Body Tissues

Groups of similar cells that perform specific functions within an organism, including muscle, nerve, epithelial, and connective tissues.