The long-run aggregate supply curve plays an important role in determining:
A)the price level in the short run.
B)output in the short run.
C)output in the short run and long run.
D)output in the long run.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that in the long run, the economy's output is determined by its resources, technology, and institutions, not by the price level.

The Long-Run Aggregate Supply Curve Plays an Important Role in Determining