The long-run aggregate supply curve
A)has a negative slope.
B)has a steep but positive slope.
C)is horizontal.
D)is vertical.
E)has steep by negative slope.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical as it represents the potential output of an economy when all inputs are utilized efficiently and there is no slack in the economy. It does not depend on changes in prices, as all factors of production and technology adjust to each other over a long period of time.

The Long-Run Aggregate Supply Curve