When $\vec { C }$ falls,the LRAS curve:
A) shifts to the right.
B) shifts to the left.
C) becomes flatter.
D) does not move.

Question

Quizplus · Accepted Answer

The LRAS (Long-Run Aggregate Supply) curve represents the total production of an economy at full employment and does not move when consumption ($\vec { C }$) changes. Changes in consumption affect the aggregate demand, not the long-run aggregate supply.

When C⃗\vec { C }C Falls,the LRAS Curve: A) Shifts to the Right

When $\vec { C }$ Falls,the LRAS Curve:
A) Shifts to the Right