The long-run aggregate supply curve is:
A) Upward-sloping and becomes steeper at output levels above the full-employment output
B) Upward-sloping and becomes flatter at output levels above the full-employment output
C) Horizontal
D) Vertical

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all factors of production are variable and can adjust to changes in prices, resulting in a constant output level at full-employment.

The Long-Run Aggregate Supply Curve Is