Which of the Following Is True About the Long-Run Aggregate

question 32

Multiple Choice

Which of the following is true about the long-run aggregate supply curve?

• A) It is vertical at the level of potential GDP.
• B) It shows the relationship between the price level and real GDP when the economy is at full employment.
• C) It does not shift in response to temporary changes in aggregate demand.
• D) All of the above are true.

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Definitions:

Actual Authority

Legally granted power to an agent by the principal, enabling the agent to act on behalf of the principal.

Authorized Purchases

Transactions made by an individual or entity that are permitted within the scope of their authority or within the terms of an agreement.

Dissolution

The process of formally ending or dissolving a company or legal entity, distributing its assets and liabilities.

Partnership at Will

A partnership at will is a business arrangement without a fixed duration, allowing any partner to dissolve the partnership at any time.