Which of the Following Statements Is TRUE About the Long-Run

question 17

Multiple Choice

Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?

• A) The long-run aggregate supply curve is vertical, and the short-run curve is horizontal.
• B) The long-run aggregate supply curve is not defined, and the short run curve is vertical.
• C) The long-run and short-run curves start out horizontal and eventually become vertical.
• D) The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.

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Definitions:

Salary Expense

This is the total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.