The Vertical Long-Run Aggregate Supply Curve Reflects the Fact That

question 58

Multiple Choice

The vertical long-run aggregate supply curve reflects the fact that in the long run, an increase in the price level

• A) will not alter the economy's maximum sustainable rate of output.
• B) will increase the economy's maximum sustainable rate of output.
• C) will reduce the quantity of goods and services purchasers will demand.
• D) will improve the overall efficiency of resource use.

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Definitions:

Open Market

A market where buying and selling of goods and services take place with minimal restrictions or regulations, often referring to the stock market.

Ownership Percentage

The fraction or percentage of a company that is owned by a shareholder or group of shareholders.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.