Which of the Following Is True in the Long Run

question 132

Multiple Choice

Which of the following is true in the long run?

• A)The aggregate demand curve determines the level of potential output.
• B)The long-run aggregate supply curve is horizontal.
• C)The actual price level is less than the expected price level.
• D)Cyclical unemployment is between 5 percent and 6 percent.
• E)The price level is determined entirely by the aggregate demand curve.

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Definitions:

Global Firms

Businesses that operate and serve customers in multiple countries, integrating and adapting their operations and strategies worldwide.

Process Innovation

A strategy that focuses on improving or creating new processes within a company to enhance productivity and efficiency.

Software

Programs and operating information used by a computer to perform specific tasks.

Reverse Innovation

A strategy where goods or services are developed first for emerging markets, and then adapted for more developed ones.