The ________ curve is vertical.
A)short-run aggregate supply
B)short-run aggregate demand
C)long-run aggregate supply
D)long-run aggregate demand

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all factors of production are variable and there are no fixed costs. As a result, changes in prices do not affect the quantity of output supplied in the long run, and the curve is perfectly inelastic.

The ________ Curve Is Vertical