The Long-Run Aggregate Supply Curve

question 139

Multiple Choice

The long-run aggregate supply curve

• A) shifts to the right when there is a tax increase.
• B) indicates the level of output (GDP) that occurs when resources are fully employed.
• C) indicates that an increase in the overall price level will cause an increase in production.
• D) shifts to the right when the Federal Reserve increases the money supply.

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Definitions:

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