The aggregate supply curve is vertical when firms adjust quantity rather than price.

Name: The aggregate supply curve is vertical when firms adjust quantity rather than price.
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The aggregate supply curve is vertical in the long run, reflecting that the quantity of output is determined by the economy's resources and technology, not by the price level. Firms adjust prices rather than quantity in response to demand changes in the long run.

The Aggregate Supply Curve Is Vertical When Firms Adjust Quantity