When Talking About Aggregate Supply, It Is Necessary to

question 66

Multiple Choice

When talking about aggregate supply, it is necessary to

• A) focus on the short run.
• B) focus on the long run.
• C) distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve.
• D) distinguish between the long-run aggregate supply curve and the long run aggregate demand curve when all adjustments to price level changes have been made.

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Definitions:

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, thus the loss has not been realized or converted into an actual loss.

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Trading Investments

Securities bought and sold for the purpose of profiting from short-term price fluctuations.