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

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all factors of production (such as capital and labor) can adjust to changes in the price level, meaning that output is not constrained by any fixed factors of production. This results in a constant level of potential output at any given price level, represented by a vertical long-run aggregate supply curve.

The Long-Run Aggregate Supply Curve