Because the long run aggregate supply curve is vertical at the full employment level of GDP, then this would imply that the long run aggregate supply curve:
A) decreases as the price level increases.
B) is independent of changes in the price level.
C) shifts to the right when the price level increases.
D) increases as the price level increases.

Question

Quizplus · Accepted Answer

The fact that the long run aggregate supply curve is vertical at the full employment level of GDP means that it is not affected by changes in the price level. The curve reflects the economy's potential output level independent of any changes in the overall price level.

Because the Long Run Aggregate Supply Curve Is Vertical at the Full