Long-Run Aggregate Supply Curve in the Classical Model

question 350

Multiple Choice

Long-run aggregate supply curve in the classical model

• A) is the level of real GDP corresponding to 100 percent labor force participation.
• B) is the level of real GDP corresponding to the natural rate of unemployment.
• C) is a downward sloping line.
• D) is determined by the capital stock of the economy, not the labor force.

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Definitions:

Property Rights

Legal rights to own, use, and dispose of assets or resources, playing a critical role in determining the allocation and use of resources in an economy.

Enforced

Imposed by authority or law, ensuring compliance or obedience through the application of rules or regulations.

Radioactive Waste

Waste material containing radioactive substances which can remain hazardous to human health and the environment for thousands of years.

Recreational Waterway

A body of water, such as a river or canal, designated for activities like boating, swimming, and fishing, often maintained for public enjoyment and ecological health.