An Increase in the Long-Run Aggregate Supply Curve Indicates That

question 75

Multiple Choice

An increase in the long-run aggregate supply curve indicates that

• A) the natural rate of unemployment has increased.
• B) unemployment has increased.
• C) the general level of prices has increased.
• D) potential real GDP has increased.

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Definitions:

Synaptic Vesicle

Membrane-bound sacs in the presynaptic terminals of neurons that store neurotransmitters, which are released into the synaptic cleft in response to an action potential.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body.

Dendrite

Extensions of a neuron that receive signals from other cells and transmit them toward the cell body.

Myelin Sheath

A fatty layer that surrounds and insulates the axons of many neurons, speeding up the transmission of electrical signals along the nerve.