Long-Run Aggregate Supply Is

question 206

Multiple Choice

Long-run aggregate supply is

• A) the sum of planned expenditures by consumers and firms.
• B) the level of output that occurs when the economy is operating on the production possibilities curve.
• C) downward sloping.
• D) upward sloping.

---

Definitions:

Product Costs

Costs that are directly associated with the manufacturing of a product, including materials, labor, and overhead.

Clay Figurines

Small sculpted figures made of clay, often used as decorative items or collectibles.

Fixed Manufacturing Cost

Costs that do not vary with the level of production output, such as rent, property taxes, and salaries of permanent employees.

Relevant Range

The span of activity levels within which the assumptions made about cost behavior and business operations are valid.