The Long-Run Aggregate Supply Curve Is

question 37

Multiple Choice

The long-run aggregate supply curve is:

• A) upward sloping.
• B) downward sloping.
• C) vertical at full-employment real GDP.
• D) horizontal at full-employment real GDP.

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Short-term Debt

Borrowings that are due for repayment within one year.