There is a distinction between the long-run aggregate supply (LRAS) curve and the short-run aggregate supply (SRAS) curve. In the long run
A) technology is fixed, but not in the short run.
B) the price level is constant in the long run, but fluctuates in the short run.
C) the aggregate supply curve is horizontal, while in the short run it is upward sloping.
D) all adjustments to changes in the price level have been made, but in the short run all changes in the price level do not occur.

Question

Quizplus · Accepted Answer

In the long run, all factors of production and prices can adjust to changes, leading to a vertical LRAS curve. This contrasts with the short run, where not all prices and wages have fully adjusted to changes in the economy, leading to an upward sloping SRAS curve.

There Is a Distinction Between the Long-Run Aggregate Supply (LRAS)