The SRAS is ____; the LRAS is ____.
A)upward sloping; upward sloping
B)upward sloping; vertical
C)vertical; upward sloping
D)vertical; vertical

Question

The SRAS is ____; the LRAS is ____.
A)​upward sloping; upward sloping
B)​upward sloping; vertical
C)​vertical; upward sloping
D)​vertical; vertical

Quizplus · Accepted Answer

The Short-Run Aggregate Supply (SRAS) curve is upward sloping because, in the short run, an increase in the price level leads to an increase in output as firms adjust. The Long-Run Aggregate Supply (LRAS) curve is vertical, reflecting the idea that in the long run, the economy's output is determined by its resources, technology, and institutions, not by the price level.

The SRAS Is ____; the LRAS Is ____

The SRAS Is ; the LRAS Is