On the Long-Run Aggregate Supply Curve

question 248

Multiple Choice

On the long-run aggregate supply curve

• A)a decrease in the price level decreases the level of potential GDP.
• B)a decrease in the price level increases the aggregate quantity of GDP supplied.
• C)a decrease in the price level decreases the aggregate quantity of GDP supplied.
• D)a decrease in the price level has no effect on the aggregate quantity of GDP supplied.

Acknowledge the role of industry analysis forces in shaping market dynamics.

Learn the importance of defining the market in situation assessments.

Recognize the relationship between economies of scale, market share, and profitability.

Understand the strategic implications of different stages of the product life cycle.

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Definitions:

Continuing Resolutions

Legislative measures used by the government to allow funding for its operations in the absence of an agreed-upon formal budget.

Biennial Budget

A budget or financial plan projected for two years, typically used by some state governments in the United States.

Federal Government Budget Process

The procedure through which the federal government creates a budget, involving proposals, reviews, and approvals by various branches of government.

Continuing Resolutions

Temporary legislation passed by Congress to fund government operations and avoid government shutdowns when the annual budget bills have not been approved.