At Full-Employment GDP

question 71

Multiple Choice

At full-employment GDP,

• A) the long-run aggregate demand curve is horizontal.
• B) the long-run aggregate demand curve is vertical.
• C) the long-run aggregate supply curve is horizontal.
• D) the long-run aggregate supply curve is vertical.

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Definitions:

Collection

The process of gathering or accruing items or amounts owed to a business, typically in the context of accounts receivable.

Loan Made

Money that is lent to another party in exchange for future repayment of the loan value amount, plus interest.

Indirect Method

An accounting technique used to prepare the cash flow statement, where increases in non-cash current assets are subtracted from, and increases in current liabilities are added to, net income to arrive at net cash flow from operating activities.

Net Cash

The difference between all cash inflows and outflows within a given period, often used to assess financial health.