Multiple Choice
In the long run, the aggregate supply curve is vertical because the:
A) output becomes fully flexible.
B) prices become fixed in the long run.
C) prices remain sticky, and thus the economy cannot produce more than a certain fixed level of GDP.
D) quantity of output returns to potential GDP as market prices adjust and resource markets return to equilibrium.
Correct Answer:

Verified
Correct Answer:
Verified
Q76: The international trade effect is the:<br>A)inverse relationship
Q77: Besides consumption, the component(s) of aggregate demand
Q78: You are an analyst preparing a forecast
Q79: You are an analyst preparing a forecast
Q80: What is meant by sticky wages, and
Q82: (Figure: Shift of the Aggregate Demand Curve)
Q83: Expansionary fiscal policy _ taxes, _ government
Q84: (Figure: Shift of the Aggregate Demand Curve)
Q85: Explain the exchange rate effect relationship between
Q86: A fall in prices leads to a:<br>A)movement