An increase in the level of prices of goods and services will do what to the long-run aggregate supply curve?
A) shift it to the right
B) shift it to the left
C) a movement along the curve
D) make the curve flat

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, representing the economy's potential output independent of the price level. Therefore, an increase in the level of prices of goods and services results in a movement along the curve, not a shift.

An Increase in the Level of Prices of Goods and Services