A Vertical Long-Run Aggregate Supply Curve Indicates That

question 143

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 capacity in the long run.
• B) outputs greater than the long-run supply constraint cannot be achieved.
• 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 promote technological change and more rapid economic growth.

---

Definitions:

Plant And Equipment

Plant and Equipment refer to the long-term assets used in the operation of a business, excluding buildings or real estate, that contribute to the production process.

Notes Payable

A financial obligation represented by a written promissory note, which specifies the amounts borrowed, interest rate, and maturity date.

Supplies Consumed

The cost of supplies used during a specific period, often impacting the income statement through expense recognition.

Adjusting Journal Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.