Which of the following is true about the long- run aggregate supply curve?
A)It is vertical at the level of potential GDP.
B)It does not shift in response to temporary changes in aggregate demand.
C)It shows the relationship between the price level and real GDP when the economy is at full employment.
D)All of the above are true.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical at potential GDP, does not shift with temporary changes in aggregate demand, and represents the relationship between the price level and real GDP at full employment.

Which of the Following Is True About the Long- Run