The Long-Run Aggregate Supply Curve Assumes That

question 174

Multiple Choice

The long-run aggregate supply curve assumes that

• A) the unemployment rate is more than 9 percent.
• B) all factors of production are fully employed.
• C) only laborers are fully employed.
• D) there is no government purchasing of goods and services.

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Definitions:

"Make" Tactic

A strategy within businesses to produce goods or services in-house, as opposed to outsourcing from external suppliers.

"Buy" Tactic

A strategy in investment or marketing, suggesting the acquisition of assets or products as a beneficial move.

White-Label Goods

Products produced by one company that another company rebrands to appear as if they had made it.

Import Tariffs

Taxes imposed by a government on goods and services imported into a country.