In the Long Run, the Aggregate Price Level Has No

question 283

True/False

In the long run, the aggregate price level has no effect on the quantity of aggregate output supplied.

---

Definitions:

Required Return

The minimum return that an investor expects to achieve by investing in a particular asset, taking into account the asset's risk.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal annual amount.

Net Working Capital

The difference between a company's current assets and current liabilities.

Variable Costs

Expenses that change in proportion to the activity of a business such as costs for raw material which increase as production increases.