If the Long-Run Aggregate Supply Curve Is Vertical, Fiscal Policy

question 18

True/False

If the long-run aggregate supply curve is vertical, fiscal policy will have no effect on output.

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Definitions:

Supplies

One type of asset acquired by a firm; it has a much shorter life than equipment.

Issuance

The process of distributing or releasing something official, such as a document, stock, or currency.

Common Stock

Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Investors

Individuals or entities that allocate capital to various types of investments with the expectation of obtaining a future financial return.