If the Long-Run Aggregate Supply Curve Is Vertical, the Multiplier

question 85

Multiple Choice

If the long-run aggregate supply curve is vertical, the multiplier effect of a change in net taxes on aggregate output in the long run

• A) depends on the price level.
• B) is one.
• C) is zero.
• D) is infinitely large.

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Definitions:

Limit Switch

An electromechanical device used to detect the presence or absence of an object when it reaches a designated point.

Pressure Switch

A switch activated at a specified pressure.

Hardwired Relay Control

A control system that uses physical electrical connections and relays for controlling machinery or processes.

Energized

Describes an electrical circuit or component that is active and under power, thereby capable of performing its intended function.