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:

Depreciable Asset

An asset whose cost is gradually deducted over its useful life due to wear and tear, decay, or obsolescence.

Acquisition Cost

The total cost involved in acquiring an asset, including the purchase price and other expenses such as legal fees, installation charges, and transportation.

After-Tax Cash Flows

Cash flow from operations after adjusting for taxes, representing the actual cash a firm has after tax obligations.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the reduction in value over time due to wear and tear or obsolescence.