Which one of the following statements is true?
A) In the short run, the level of output is determined by demand.
B) In the long run, the level of output is determined by demand.
C) In the long run, the aggregate supply curve is horizontal.
D) Where aggregate demand and aggregate supply intersect is always the full-employment level of output.
Correct Answer:
Verified
Q134: Recall the Application about the factors involved
Q135: Figure 9.2 Q136: Figure 9.2 Q137: The long-run aggregate supply curve is horizontal. Q138: Aggregate demand determines output in the short Q140: Recall the Application about the factors involved Q141: In the short run, the price level Q142: Explain why the long-run aggregate supply curve Q143: If potential output exceeds actual output, _ Q144: The term "stagflation" is used to define
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents