What is the slope of the LAS curve?
A)Horizontal.
B)Upward-sloping.
C)Vertical.
D)Downward-sloping.
E)It is the same slope as the SAS curve.

Question

Quizplus · Accepted Answer

The LAS curve represents the maximum amount of output that can be produced in the economy at a given price level, assuming all resources are fully utilized. Therefore, the LAS curve is vertical because the quantity of output does not change with changes in the price level, but rather is determined by the potential output of the economy, which is fixed in the short run.

What Is the Slope of the LAS Curve