Along the Long-Run Aggregate Supply Curve, the Level of RGDP

question 96

Multiple Choice

Along the long-run aggregate supply curve, the level of RGDP supplied ____ with increases in the price level.

• A)​does not change
• B)​increases
• C)​decreases slightly
• D)​decreases dramatically

---

Definitions:

Resource Demand

The requirement for raw materials, labor, and other inputs needed by businesses to produce goods and services.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.

Fixed Costs

Expenses that do not change in the short term, regardless of the level of goods or services produced by a business.

BTU

British Thermal Unit, a measure of heat energy equal to the amount required to raise the temperature of one pound of water by one degree Fahrenheit.