The vertical long-run aggregate supply curve implies that shifts in aggregate demand will, in the long-run,
A. change output and prices
B. change interest rates
C. change prices only
D. change nothing
Ans: C. change prices only
You might also like to view...
The goals of bank asset management include
A) maximizing risk. B) minimizing liquidity. C) lending at high interest rates regardless of risk. D) purchasing securities with high returns and low risk.
Ceteris paribus, or "all other things held constant", is an assumption that had which of the following effects on a demand schedule?
a) It takes only prices into account b) It considers the effects of all possible changes on demand c) It is accurate no matter what changes occur d) It is accurate at only one price level
When a supervisor administer a questionnaire among participants that have never met it is called
a. brainstorming b. sampling c. delphi technique d. groupthink
When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A. The asset holds its value over time. B. It is easily and readily converted into money without any loss in purchasing power. C. The face value of the asset is somewhat less than its value when converted into currency. D. It earns a high rate of interest, so its purchasing power is maintained when prices rise.