One Reason the Long-Run Aggregate Supply Curve Has the Slope

question 90

Multiple Choice

One reason the long-run aggregate supply curve has the slope it does is due to the fact that:

• A)If current output equals potential output, the short-run aggregate supply curve is stable
• B)That inflation is zero in the long run
• C)Over long periods of time the economy moves to its potential level of output with higher inflation
• D)Over long periods of time the economy moves to its potential level of output with lower inflation

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Definitions:

MRP

Material Requirements Planning, a system for managing manufacturing processes by calculating materials, components, and schedule needs.

Time-Phased Product Structure

A detailed chart representing the timing and quantity of each component needed in the manufacturing process over time.

Bill Of Material

A comprehensive list of raw materials, components, and assemblies needed to manufacture or repair a product.

Lead Times

The period between the initiation and completion of a process or project, such as the time from placing an order to delivery or from product development to market launch.