The Assumption That in the Long Run Prices and Wages

question 88

Multiple Choice

The assumption that in the long run prices and wages are fully flexible implies that the long-run aggregate supply curve is determined by ________.

• A)capital and labor inputs
• B)technology
• C)the natural rate of unemployment
• D)all of the above
• E)none of the above

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Definitions:

Values

The principles and beliefs that guide an individual's or society's actions and decisions, often reflecting moral and ethical considerations.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Economic Development

The process of improving economic well-being and quality of life through growth and development, often through government policies and programs.

North America

A continent in the Northern Hemisphere and almost entirely within the Western Hemisphere; it includes countries such as Canada, the United States, and Mexico.