The long-run aggregate supply curve is vertical:
A. because the rate of inflation is steady in the long run.
B. because resource prices eventually rise and fall with product prices.
C. because product prices tend to increase at a faster rate than resource prices.
D. only when the money supply increases at the same rate as real GDP.
B. because resource prices eventually rise and fall with product prices.
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Nominal GDP was $12.1 trillion and real GDP is $11 trillion. The GDP price index is ________
A) 90.1 B) 121.0 C) 1.10 D) 91.0 E) 110.0
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
The provision of loan guarantees can improve economic efficiency when
What will be an ideal response?
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Which country has the highest marginal cost of extracting oil?
A. Saudi Arabia B. Russia C. United Arab Emirates D. Canada