Why Is the Long-Run Aggregate Supply Curve Vertical at Potential

question 104

Multiple Choice

Why is the long-run aggregate supply curve vertical at potential real GDP?

• A) Resource costs adjust fully to price changes.
• B) Producers' profits are increasing at this point.
• C) Unemployment equals zero.
• D) There is a very strong relationship between further price changes and output produced.
• E) Production costs are at the lowest level possible.

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Definitions:

Reuptake

A process by which neurotransmitters released into the synaptic cleft are reabsorbed by the presynaptic neuron, helping to terminate the synaptic transmission.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.

Muscular Paralysis

The loss of muscle function in part of your body, typically resulting from damage to the nervous system.

Acetylcholine

A neurotransmitter in the nervous system that plays an important role in muscle activation and memory functions.