Which of the Following Is True in the Long Run

question 48

Multiple Choice

Which of the following is true in the long run?

• A)The aggregate supply curve is the key determinant of 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 long-run aggregate supply curve.

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Definitions:

Statistical Significance

A measure indicating that the likelihood of a result occurring by chance is low, suggesting that the observed effect is likely true.

Mean Differences

A statistical measurement that signifies the average disparity between groups of data points.

Collectivist Cultures

Societies that prioritize the group over the individual, emphasizing interdependence, cooperation, and social harmony.

Independent Self

A self-concept that emphasizes personal goals, values, and beliefs over the desires and needs of others; common in individualistic societies.