-A Total Product Curve Shows the

question 149

Multiple Choice

-A total product curve shows the

• A)aggregate output of many firms in an industry.
• B)amount of product consumers will take off the market.
• C)maximum amount of product that it is technically possible to produce.
• D)relationship between units of inputs and total output.

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Definitions:

Aggregate Supply

The complete amount of products and services that businesses within a country's economy intend to sell over a certain period.

Long Run Aggregate Supply

Long run aggregate supply represents the total output of goods and services that an economy can produce when both labor and capital are fully employed, at their most efficient levels.

Expected Price Level

The forecasted average price across all goods and services in an economy, reflecting the expected general price environment.

Long-Run Aggregate-Supply

The total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, without any changes in the price level over the long term.