What economists sometimes call the "long-run aggregate supply curve" is
A)vertical.
B)horizontal.
C)nonlinear.
D)negatively sloped.
E)positively sloped.

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) curve is vertical because it represents the economy's potential output when all resources are fully utilized. In the long run, factors of production such as labour, capital, and technology can all be adjusted to their optimal levels, leading to a fixed potential output level regardless of changes in the price level.

What Economists Sometimes Call the "Long-Run Aggregate Supply Curve" Is