The economy's long-run AS curve assumes that wages and other resource prices ________.

A. are flexible upward but inflexible downward
B. eventually rise and fall to match upward or downward changes in the price level
C. rise and fall more rapidly than the price level
D. are relatively inflexible both upward and downward


Answer: B

Economics

You might also like to view...

The average output produced per worker is one way of measuring

A) inflation. B) the interest rate. C) employment. D) productivity.

Economics

Ceteris paribus, if North Korea increases the size of its military, then:

A.) Its production possibilities curve will shift outward. B.) Its production possibilities curve will shift inward. C.) Its production of consumer goods will increase. D.) Its production of consumer goods will decrease.

Economics

Supply-side economists emphasize the importance of saving to finance investment.

Answer the following statement true (T) or false (F)

Economics

It is most likely that the federal government will never actually pay off the national debt.

Answer the following statement true (T) or false (F)

Economics