The Long Run Aggregate Supply Curve Is Vertical Because

question 34

Multiple Choice

The long run aggregate supply curve is vertical because

• A) the production possibilities curve is vertical.
• B) the aggregate demand curve is downward sloping.
• C) technology increases at a constant rate.
• D) a change in the level of prices will have no effect on real output in the long-run.

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Definitions:

Coercive Power

Coercive power refers to the ability of a person or group to force others to comply with demands or obey orders, often through the threat of punishment or negative consequences.

Dominant Group

A social group that possesses the greatest power, wealth, prestige, or privilege in a given society and uses these advantages to influence or control other groups.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Subordinate Group

A group of individuals in society who have less power, status, or access to resources compared to the dominant groups.