The Distinction Between the Short-Run and Long-Run Aggregate Supply Curve

question 43

Multiple Choice

The distinction between the short-run and long-run aggregate supply curve is necessary because in the long run:

• A)technology is fixed, but in the short run it changes.
• B)changes in the price level do not affect the level of real GDP but do in the short run.
• C)the aggregate supply curve is horizontal, but in the short run it is upward sloping.
• D)the price level is constant, but in the short run it fluctuates.

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Definitions:

Limited Liability Company

A legal form of business organization that combines elements of a corporation and a partnership or sole proprietorship, limiting the owners' personal liability.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often seen in corporate dividends.

Owners Called Members

A term typically used in limited liability companies (LLCs) where the owners are referred to as members.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets = liabilities + owners' equity.