Which of the following is true of the long-run aggregate supply curve?
A)It is vertical.
B)The level of RGDP supplied does not change as the price level changes.
C)The level of RGDP supplied changes with the levels of capital, land, labor, and technology available to the economy.
D)Sometimes the LRAS also shifts when the SRAS shifts, and sometimes it does not.
E)All of the above are true of the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) curve is vertical, indicating that the level of real GDP supplied is not affected by changes in the price level. It reflects the economy's potential output, which is determined by the available resources and technology. Therefore, all the statements A, B, C, and D are true regarding the LRAS curve.

Which of the Following Is True of the Long-Run Aggregate