That the LAS curve is vertical means that
A)firms are willing to produce any amount of output demanded at the fixed price level.
B)actual real GDP does not depend on the value of natural real GDP.
C)natural real GDP does not depend on the price level.
D)output never deviates from the natural real GDP.

Question

Quizplus · Accepted Answer

The LAS curve being vertical means that natural real GDP does not depend on the price level. This is because the LAS represents the potential output of an economy, which is determined by factors like the size of the labor force, the amount of physical capital available, and the level of technology. These factors are largely independent of the price level.

That the LAS Curve Is Vertical Means That