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) Not shift the curve at all
D) Depends upon the long-run aggregate demand curve

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that it is not affected by changes in the price level. It represents the economy's maximum sustainable output, which is determined by factors such as technology and resources, not by the price level.

An Increase in the Level of Prices of Goods and Services