A vertical curve that defines the level of full-employment or potential output based on a given amount of resources,efficiency,and technology in the economy is called:
A)the short-run aggregate supply curve.
B)the long-run aggregate supply curve.
C)the aggregate demand curve.
D)none of the above.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the level of output that can be produced with full employment of resources and existing technology. It is a vertical curve because it is independent of changes in prices in the long run.

A Vertical Curve That Defines the Level of Full-Employment or Potential