If input prices and output prices were perfectly flexible in the short run, AS would be the same in the short and long runs.

Name: If input prices and output prices were perfectly flexible in the short run, AS would be the same in the short and long runs.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

If prices are perfectly flexible, the economy can adjust immediately to changes in demand or supply, making the Aggregate Supply (AS) curve vertical in both the short and long run.

If Input Prices and Output Prices Were Perfectly Flexible in the Short