In the Long Run ________

question 71

Multiple Choice

In the long run ________.

• A)the aggregate supply is vertical with respect to output
• B)the Phillips curve is vertical with respect to unemployment
• C)fluctuations in the inflation rate have no impact on output and unemployment
• D)all of the above
• E)none of the above

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Definitions:

Common Fixed Costs

Costs that do not change with the level of production or sales and are shared across different products or departments within a company.

Decision Making

The process of choosing among alternative courses of action or solutions to a problem in order to achieve a desired outcome.

Outside Supplier

An outside supplier is an external entity that provides goods or services to a company, typically not affiliated with the company’s internal supply chain.

Fixed Manufacturing Overhead

Costs related to the production process that do not change with the volume of production, such as salaries of manufacturing supervisors and rent for the factory.