The Economy's Long-Run Aggregate Supply Curve

question 125

Multiple Choice

The economy's long-run aggregate supply curve

• A) never shifts
• B) indicates that in the long run,the price level is constant
• C) is shifted by demand shocks
• D) is a vertical line at the full-employment level of output
• E) is perfectly elastic

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Definitions:

Gratuitous Bailment

A bailment where the bailee holds the bailed property without receiving compensation, doing it for the bailor's benefit only.

Legal Obligation

A duty enforced by law, requiring an entity or individual to follow or abstain from specific actions, subject to legal consequences for failure to comply.

Lawnmower

A machine equipped with revolving blades or a blade bar for cutting grass to an even length.

Gratuitous Bailment

A bailment where the bailee agrees to hold onto the bailor's property without expecting any form of payment.