The long-run aggregate supply curve is:
A) downward-sloping.
B) horizontal.
C) vertical.
D) upward-sloping.

Name: The long-run aggregate supply curve is: A) downward-sloping. B) horizontal. C) vertical. D) upward-sloping.
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Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all resources are adjustable, and therefore the economy operates at potential GDP. This means that changes in the price level do not affect the level of output in the long run.

The Long-Run Aggregate Supply Curve Is