The Long-Run Aggregate Supply Curve Shows the Maximum Output Possible

question 37

True/False

The long-run aggregate supply curve shows the maximum output possible for an economy and, therefore, does not shift.

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Definitions:

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.

Surplus

An excess of revenues over expenses in a budget, or an excess of goods or materials than what is needed.

Price Floor

A government-imposed minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.

Quantity Supplied

Refers to the amount of a good or service that producers are willing to sell at a given price over a specific period.