The Economy's Long-Run AS Curve Assumes That Wages and Other

question 100

Multiple Choice

The economy's long-run AS curve assumes that wages and other resource prices:

• A) eventually rise and fall to match upward or downward changes in the price level.
• B) are flexible upward but inflexible downward.
• C) rise and fall more rapidly than the price level.
• D) are relatively inflexible both upward and downward.

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Definitions:

Contracts Voidable

Agreements that may be declared invalid by one or more of the parties involved due to reasons such as fraud, duress, or incapacity, but remain effective unless voided.

Age of Majority

The legally defined age at which a person is considered an adult, with full legal rights and responsibilities.

Disaffirm

The legal act of rejecting or voiding a contract or agreement, especially used in contexts where one party is not legally competent to enter into a contract.

Contract

A contract is an official agreement among two or more individuals creating reciprocal legal duties that can be upheld in court.