There Is a Distinction Between the Long-Run Aggregate Supply (LRAS)

question 335

Multiple Choice

There is a distinction between the long-run aggregate supply (LRAS) curve and the short-run aggregate supply (SRAS) curve. In the long run

• A) technology is fixed, but not in the short run.
• B) the price level is constant in the long run, but fluctuates in the short run.
• C) the aggregate supply curve is horizontal, while in the short run it is upward sloping.
• D) all adjustments to changes in the price level have been made, but in the short run all changes in the price level do not occur.

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Definitions:

Sensory Adaptation

A change in the responsiveness of the sensory system based on the average level of surrounding stimulation.

Auditory Cortex

The region of the brain that is responsible for processing auditory information, located in the temporal lobe.

Sensation

The process of receiving stimulus energies from the external environment and transforming those energies into neural energy.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in multiple high-level functions like perception, thought, and memory.