The Long-Run Aggregate Supply Curve Is a Vertical Line Passing

question 67

Multiple Choice

The long-run aggregate supply curve is a vertical line passing through

• A)the natural rate of output.
• B)the natural-rate price level.
• C)the actual rate of unemployment.
• D)the expected rate of inflation.

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time for labor or services rendered.

Monopolist

A monopolist is a single seller in a market who has significant control over the price and supply of a product or service.

Competitive Labor Market

A market where numerous buyers (employers) and sellers (workers) meet, with the price of labor (wages) determined by the supply of and demand for labor.

Marginal Product

The additional output resulting from one more unit of a certain input, keeping other inputs constant.