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
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If the marginal social cost of a good equals the marginal private cost of the good, then the marginal external cost of the good
A) is zero. B) equals the marginal social cost. C) equals the marginal social benefit. D) equals the marginal private benefit.
Which of the following statements is true?
A) Government cannot remove individuals from a prisoner's dilemma setting and make them better off. B) As long as government charges each individual a tax that is more than the gain received by being removed from a prisoner's dilemma setting, then government makes that individual better off. C) Government can remove individuals from a prisoner's dilemma setting by changing the payoff matrix. D) a and c E) all of the above