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    Macroeconomics Study Set 43
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    Exam 16: B: Long-Run Macroeconomic Adjustments
  5. Question
    The Long-Run Aggregate Supply Curve Is Vertical
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The Long-Run Aggregate Supply Curve Is Vertical

Question 2

Question 2

Multiple Choice

The long-run aggregate supply curve is vertical:


A) because the rate of inflation is steady in the long run.
B) Input prices eventually rise in response to changes in output prices.
C) because product prices always increase at a faster rate than resource prices.
D) only when the money supply increases at the same rate as real GDP.

Correct Answer:

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