In the Keynesian model,which curve is vertical?
A)LRAS
B)SRAS
C)AD
D)NS

Question

Quizplus · Accepted Answer

In the Keynesian model, the LRAS (Long-Run Aggregate Supply) curve is vertical because it represents the economy's potential output in the long run, which is determined by factors such as technology and resources. The other curves, such as SRAS (Short-Run Aggregate Supply) and AD (Aggregate Demand), are upward sloping or downward sloping, depending on the situation. NS (Natural Rate of Unemployment) is not a curve but a concept that refers to the rate of unemployment that exists when the economy is at potential output.

In the Keynesian Model,which Curve Is Vertical