A vertical line showing the economy's potential is called the:
A)aggregate demand curve.
B)long-run aggregate supply line.
C)short-run equilibrium output line.
D)short-run aggregate supply line.

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS)line is vertical at the economy's potential output, and illustrates the economy's long-run productive capacity or potential output.

A Vertical Line Showing the Economy's Potential Is Called The