Because the Price Level Does Not Affect the Long-Run Determinants

question 144

True/False

Because the price level does not affect the long-run determinants of real GDP, the long-run aggregate-supply is vertical.

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Definitions:

Economic Thinking

An approach to analyzing problems that considers the allocation of scarce resources and the trade-offs involved in decisions.

Additional Benefits

Extra advantages or positive outcomes that accompany a primary benefit or result.

Marginal Cost

The financial outlay required to produce an additional unit of a good or service.

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.