The Long-Run Aggregate Supply Curve Is Vertical,reflecting the Fact That

question 25

Multiple Choice

The long-run aggregate supply curve is vertical,reflecting the fact that

• A)changes in price have no effect on output in the long run.In the long run,the price of goods and the price of resources move together and firms have no incentive to change their output.
• B)fluctuations in inflation cannot be anticipated in the long run,so future prices have no effect on output.
• C)changes in price affect output a lot in the long run because in the long run firms can adjust factory sizes to meet changing demand conditions.
• D)changes in price have a large effect on output because they lead to highly variable interest rates,and business is hard to conduct under those circumstances.

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Definitions:

Human Ecology

A theoretical approach to urban sociology that borrows ideas from biology and ecology to highlight the links between the physical and social dimensions of cities and identify the dynamics and patterns of urban growth.

Social Processes

Encompass the ways in which individuals and groups interact, change, and develop within a society.

Urban Populations

The demographic segment of people living in cities and towns, as opposed to rural areas, often associated with higher density of human structures and infrastructure.

Differentiation

In the theory of human ecology refers to the process by which urban populations and their activities become more complex and heterogeneous over time.