The long run aggregate supply curve is upward-sloping because real wages eventually change by
the same amount as changes in the price level.

Question

Quizplus · Accepted Answer

The long run aggregate supply curve is vertical, not upward-sloping, because in the long run, output is determined by factors such as capital, labor, and technology, not by the price level. Real wages adjust to maintain equilibrium in the labor market, making the quantity of output supplied independent of the price level in the long run.

The Long Run Aggregate Supply Curve Is Upward-Sloping Because Real