Changes in the Price Level

question 53

Multiple Choice

Changes in the price level

• A)increase the level of aggregate supply in the long run.
• B)decrease the level of aggregate supply in the long run.
• C)do not affect the level of aggregate supply in the long run.
• D)increase the level of aggregate supply in the long run only at very high levels of output.

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Definitions:

Limited Liability

A form of legal protection for shareholders and owners that limits their losses to the amount of investment in the company, protecting personal assets from company debts and liabilities.

Double Taxation

Double Taxation is a tax principle referring to income taxes being paid twice on the same source of earned income. It can occur when income is taxed at both the corporate level and personal level, or in two different countries.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of those owners and can enter into contracts, sue, and be sued.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.