In the Long-Run Aggregate Demand-Aggregate Supply Model

question 60

Multiple Choice

In the long-run aggregate demand-aggregate supply model:

• A)long-run equilibrium occurs wherever the aggregate demand curve intersects the short-run aggregate supply curve.
• B)the long-run aggregate supply curve is horizontal.
• C)the price level is the same regardless of the location of the aggregate demand curve.
• D)long-run equilibrium occurs at the intersection of the aggregate demand curve, the short-run aggregate supply curve, and the long-run aggregate supply curve.

---

Definitions:

Price Skimming

A pricing strategy where a seller charges a relatively high price for a product at first, then lowers the price over time.

Customer Behaviour

Patterns and tendencies among consumers that influence their purchasing decisions and interactions with brands.

Competitor Behaviour

The actions and strategies employed by competitors within the same industry, impacting market dynamics and business decisions.

Management Accountant's Role

Involves providing financial data and advice to a company's management for planning, performance measurement, and risk management.