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When the Long-Run Aggregate Supply Curve Is Drawn as a Vertical

Question 70

Multiple Choice

When the long-run aggregate supply curve is drawn as a vertical line, the theorist is assuming that


A) the economy tends to move toward full employment in the long run.
B) the economy tends to produce stable prices in the long run.
C) the economy is stagnating at a low level of growth.
D) shifting aggregate demand can change the level of employment in the long run.

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