-The curve labeled A in the above figure is a
A) short-run aggregate demand curve.
B) short-run aggregate supply curve.
C) long-run aggregate demand curve.
D) long-run aggregate supply curve.

Question

-The curve labeled A in the above figure is a
A) short-run aggregate demand curve. 
B) short-run aggregate supply curve. 
C) long-run aggregate demand curve. 
D) long-run aggregate supply curve.

Quizplus · Accepted Answer

The long-run aggregate supply curve (LRAS) is vertical, indicating that in the long run, the total output of an economy is not affected by the level of prices. This is because, in the long run, prices of inputs and outputs have fully adjusted to any changes in the economic environment.

-The Curve Labeled a in the Above Figure Is a