There Is a Distinction Between the Long-Run Aggregate Supply (LRAS)

question 335

Multiple Choice

There is a distinction between the long-run aggregate supply (LRAS) curve and the short-run aggregate supply (SRAS) curve. In the long run

• A) technology is fixed, but not in the short run.
• B) the price level is constant in the long run, but fluctuates in the short run.
• C) the aggregate supply curve is horizontal, while in the short run it is upward sloping.
• D) all adjustments to changes in the price level have been made, but in the short run all changes in the price level do not occur.

---

Definitions:

Business Units

Individual, operational segments within a company, each responsible for specific business functions or objectives.

Operating Principles

Fundamental guidelines or rules that are used to steer an organization's decisions and actions.

Managing Expectations

The practice of setting and communicating realistic forecasts to prevent disappointment or dissatisfaction.

Occurrence of Conflicts

Refers to situations where disagreements or disputes arise among individuals or groups, often leading to a negative impact if not managed appropriately.