The Long-Run Aggregate Supply Curve Is

question 49

Multiple Choice

The long-run aggregate supply curve is

• A) vertical because full-employment output is independent of the price level.
• B) upward sloping because the economy grows over time.
• C) horizontal because full-employment output is independent of the price level.
• D) upward sloping because as the price level rises,firms will increase output.
• E) downward sloping because rising prices reduce real wealth and spending.

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Definitions:

Group Identification

The psychological process by which an individual identifies with a specific group, adopting its norms, values, and behaviors as their own.

Self-efficacy

A person's confidence in their ability to carry out actions required to achieve particular outcomes.

Social-cognitive Theories

Theoretical frameworks that emphasize the role of cognitive processes in understanding social behavior.

Environmental Influences

Factors within an individual's environment that impact their behavior, development, and personality.