In the extended AD-AS model, the long-run aggregate supply curve is vertical.

Name: In the extended AD-AS model, the long-run aggregate supply curve is vertical.
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In the extended AD-AS model, the long-run aggregate supply curve is vertical because in the long run, the economy operates at its potential output level and is not affected by changes in prices. In the short run, the aggregate supply curve may be upward sloping due to sticky prices and wages.

In the Extended AD-AS Model, the Long-Run Aggregate Supply Curve