Which of the Following Is True of the Long-Run Aggregate

question 165

Multiple Choice

Which of the following is true of the long-run aggregate supply curve?

• A)It is vertical.
• B)The level of RGDP supplied does not change as the price level changes.
• C)The level of RGDP supplied changes with the levels of capital, land, labor, and technology available to the economy.
• D)Sometimes the LRAS also shifts when the SRAS shifts, and sometimes it does not.
• E)All of the above are true of the long-run aggregate supply curve.

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Definitions:

Significance Tests

Statistical tests used to determine whether the observed data deviates significantly from the null hypothesis or not.

Significance Test

A statistical test used to determine if there is enough evidence in a sample of data to infer that a condition holds true for the entire population.

Random Sample

A sampling method in which each member of a population has an equal chance of being included, ensuring that the sample represents the entire population.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of a Type I error.