The Long-Run Aggregate Supply Curve Is Vertical

question 197

Multiple Choice

The long-run aggregate supply curve is vertical:

• A)because the rate of inflation is steady in the long run.
• B)because resource prices eventually catch up with product prices.
• C)because product prices always increase at a faster rate than resource prices.
• D)only when the money supply increases at the same rate as real GDP.

---

Definitions:

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Service Firms

Companies that provide intangible products, such as consulting, banking, and legal services, to their customers.

Generate Revenues

The process of bringing in money from sales of goods or services that a company offers to its customers.

Identifying Alternatives

The process of defining and evaluating different options or courses of action in decision-making.