A Vertical Long-Run Aggregate Supply Curve Indicates That

question 90

Multiple Choice

A vertical long-run aggregate supply curve indicates that

• A)an increase in the price level will not expand an economy's output in the long run.
• B)output rates greater than the long-run output rate are unattainable.
• C)an increase in the price level will permit the economy to achieve a higher level of output.
• D)an increase in the price level will increase technological change and economic growth.
• E)the long-run aggregate supply curve never shifts.

---

Definitions:

Monthly Unit Sales

The number of units of a product sold in a particular month.

Break-even Point

The financial state in which total revenues equal total expenses, and there is no profit or loss.

Variable Cost

Costs that vary directly with the level of production or the volume of services provided.

Fixed Expense

Costs that remain unchanged over a specified period despite variations in business activity levels, such as lease payments or salaries for permanent staff.