When the price level rises, the long-run aggregate supply curve
A) shifts rightward.
B) does not shift.
C) slopes upward.
D) shifts leftward.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that in the long run, the total output of an economy is not affected by the price level. Therefore, when the price level rises, the long-run aggregate supply curve does not shift.

When the Price Level Rises, the Long-Run Aggregate Supply Curve