In the Long Run,changes in Prices of Goods and Services

question 107

Multiple Choice

In the long run,changes in prices of goods and services paid by consumers:

• A)have no effect on the macroeconomy.
• B)have no effect on aggregate supply.
• C)have no effect on aggregate demand.
• D)All of these are true.

---

Definitions:

Thin-Crust Pizza

A type of pizza characterized by its slim, crisp base, offering a crunchy texture and contrasting with thicker pizza variants.

Normal Goods

Goods for which demand increases as the income of consumers increases, assuming all other factors remain constant.

Natural Gas

A fossil fuel consisting mainly of methane, used primarily for heating, cooking, and electricity generation.

Heating Oil

A low viscosity, liquid petroleum product used as a fuel for furnaces or boilers in buildings.