On the Long-Run Aggregate Supply Curve

question 232

Multiple Choice

On the long-run aggregate supply curve

• A)an increase in the price level increases the aggregate quantity of GDP supplied.
• B)an increase in the price level reduces the aggregate quantity of GDP supplied.
• C)an increase in the price level has no effect on the aggregate quantity of GDP supplied.
• D)an increase in the price level increases the level of potential GDP.

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Definitions:

Pre-Emptive Right Provision

A clause usually found in a company's charter or bylaws that gives existing shareholders the first opportunity to buy new shares before they are offered to the public.

Authorized Capital

The maximum amount of share capital that a company is authorized by its corporate charter to issue to shareholders.

Treasury

A government department responsible for managing the financial resources, including revenue collection and expenditure.

Corporation Not Bound

Indicates a scenario where a corporate entity is not legally obligated or tied to an agreement or contract.