In the Long Run,the Level of Output Is Determined by The:
In the long run,the level of output is determined by the:
A) interaction of supply and demand.
B) money supply and the levels of government spending and taxation.
C) amounts of capital and labour and the available technology.
D) preferences of the public.
When a long-term aggregate supply curve is drawn with real GDP (Y)along the horizontal axis and the price level (P)along the vertical axis,this curve:
A) slopes upward and to the right.
B) slopes downward and to the right.
C) is horizontal.
D) is vertical.
The vertical long-run aggregate supply curve satisfies the classical dichotomy because the natural rate of output does not depend on:
A) the labour supply.
B) the supply of capital.
C) the money supply.
If the long-run aggregate supply curve is vertical,then changes in aggregate demand affect:
A) neither prices nor level of output.
B) both prices and level of output.
C) level of output but not prices.
D) prices but not level of output.