Multiple Choice
The long run aggregate supply curve is vertical because
A) the production possibilities curve is vertical.
B) the aggregate demand curve is downward sloping.
C) technology increases at a constant rate.
D) a change in the level of prices will have no effect on real output in the long-run.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: The open economy effect and interest rate
Q30: Economic growth causes the<br>A) production possibilities curve
Q31: When total planned real expenditures change due
Q32: The downward slope of the aggregate demand
Q33: Holding nominal money balances constant, a decrease
Q35: Aggregate supply is<br>A) the summation of all
Q36: The interest rate effect suggests that<br>A) an
Q37: If the dollar appreciates and foreign goods
Q38: When interest rates rise<br>A) borrowing costs increase,
Q39: Secular inflation in the United States since