Which of the Following Is a Long-Run Economic Aspect on Which

question 153

Multiple Choice

Which of the following is a long-run economic aspect on which most economists agree?

• A)The natural rate of unemployment depends primarily on the level of aggregate demand.
• B)Inflation depends primarily upon the money supply growth rate.
• C)There is a tradeoff between the inflation rate and the natural rate of unemployment.
• D)The rate of economic growth depends primarily on the growth in money supply.

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Definitions:

Scatter Diagram

A graphical representation used to show the relationship between two variables, often used in statistics and quality control to identify potential correlations.

Degree of Operating Leverage (DOL)

A measure of how much a company's operating income will change in response to a change in sales, indicating the company's sensitivity to changes in business volume.

Total Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes toward covering fixed costs and generating profit.

Pretax Income

The income a company generates before income taxes are deducted, also known as earnings before tax (EBT).