-In the above figure, curve A is the ________ curve, curve B is the ________ curve, and curve C is the ________ curve.
A) long-run aggregate supply; short-run aggregate supply; aggregate demand
B) aggregate demand; short-run aggregate supply; long-run aggregate supply
C) short-run aggregate supply; long-run aggregate supply; aggregate demand
D) long-run aggregate supply; aggregate demand; short-run aggregate supply

Question

-In the above figure, curve A is the ________ curve, curve B is the ________ curve, and curve C is the ________ curve.
A) long-run aggregate supply; short-run aggregate supply; aggregate demand 
B) aggregate demand; short-run aggregate supply; long-run aggregate supply 
C) short-run aggregate supply; long-run aggregate supply; aggregate demand 
D) long-run aggregate supply; aggregate demand; short-run aggregate supply

Quizplus · Accepted Answer

Curve A represents the long-run aggregate supply (LRAS) which is vertical because in the long run, the total production is determined by the availability of resources, technology, and productive efficiency, not by the price level. Curve B represents the short-run aggregate supply (SRAS) which slopes upwards because in the short term, prices can affect production. Curve C represents the aggregate demand (AD) curve, which slopes downwards, indicating that as the price level decreases, the quantity of goods and services demanded increases.

-In the Above Figure, Curve a Is the ________ Curve