When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,which of the following curves is vertical?
A)SRAS
B)AD
C)LRAS
D)None of the above

Question

Quizplus · Accepted Answer

The LRAS curve represents the long-run aggregate supply, which is determined by factors such as technology and the availability of resources. These factors are considered to be fixed in the long run, meaning that changes in the price level do not affect the level of output. This makes the LRAS curve a vertical line at the potential output level. The AD and SRAS curves are not vertical, as they are impacted by changes in the price level and other short-term factors.

When Plotted with the Aggregate Price Level on the Vertical