Why is the long-run aggregate supply curve a vertical line?
A) At that level of real GDP, the production costs are at their lowest level.
B) At that level of real GDP, production costs have fully adjusted to price changes.
C) At that level of real GDP, the unemployment rate is 0 percent.
D) At that level of real GDP, the inflation rate is 0 percent.
B
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By the 21st century few people purchased printed encyclopedias. Which of the following competitive forces best explains this?
A) competition from substitutes B) the bargaining power of suppliers C) the bargaining power of buyers D) the threat from potential entrants
A shadow price is:
(a) the price in the previous period. (b) the price in the next period. (c) the social value of a good or service. (d) the market value of a good or service. (e) none of the above.