In the Long Run, the Level of Output

question 130

Multiple Choice

In the long run, the level of output

• A) depends on the money supply.
• B) depends on the price level.
• C) is determined by supply-side factors.
• D) All of the above are correct.

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Definitions:

Externality

The uncompensated impact of one person’s actions on the well-being of a bystander

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Organic

Pertaining to or derived from living organisms; in agriculture, involving food produced without the use of synthetic pesticides or fertilizers.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.