The Long-Run Aggregate Supply Curve Is

question 241

Multiple Choice

The long-run aggregate supply curve is

• A) horizontal.
• B) vertical.
• C) upward sloping.
• D) downward sloping.

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Definitions:

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively excluding others from using it, often leading to free-rider problems.

Public Good

Goods that are non-excludable and non-rivalrous, meaning that consumption by one individual does not reduce availability to others, and people cannot be prevented from using them.

Consumption

The act of using goods and services by households.

External Costs

Costs of economic activity not borne by the producer or consumer but by society, often not reflected in the price of goods or services.