The "Long-Run Aggregate Supply Curve," Vertical at Y^*,shows That

question 7

Multiple Choice

The "long-run aggregate supply curve," vertical at Y^*,shows that

• A)potential output will rise as prices rise.
• B)potential output will fall as prices rise.
• C)potential output is compatible with any price level.
• D)potential output is compatible with one particular price level.
• E)prices will always rise in the long run.

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Definitions:

Composite Volcano

A volcano built by both lava flows and pyroclastic eruptions, typically featuring steep profiles and explosive activity.

Shield Volcano

A broad, domed volcano with gently sloping sides, primarily formed by the eruption of low-viscosity lava.

Caldera

A large volcanic crater formed by a major eruption leading to the collapse of the mouth of the volcano.

Steam Eruption

A volcanic event wherein water is heated by magma and vaporizes explosively, releasing steam and volcanic gases into the atmosphere.