Which of the Following Is True in the Long Run

question 167

Multiple Choice

Which of the following is true in the long run?

• A)The aggregate demand curve determines the level of potential output.
• B)The long-run aggregate supply curve is vertical.
• C)The actual price level is greater than the expected price level.
• D)Cyclical unemployment is between 5 percent and 6 percent.
• E)The price level is determined entirely by the long-run aggregate supply curve.

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Definitions:

Moderate Anxiety

A level of anxiety that is noticeable and may cause some disturbances in daily functioning but does not overpower the individual's ability to act or perform tasks.

Exploring Alternatives

The process of reviewing and considering different options or courses of action before making a decision.

Idealization

The process of viewing or representing an individual, object, or idea as perfect or better than in reality.

Compensation

Payment or remuneration given for services rendered or to compensate for injuries or losses.