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.

---

Definitions:

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition.

Pure Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to significant control over prices.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than just price.