Refer to the above figure. Which of the graphs is consistent with the long-run aggregate supply curve?
A) Graph A
B) Graph B
C) Graph C
D) Graph D

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that in the long run, the economy's potential output is fixed and independent of the price level. Graph A shows a vertical line, which is consistent with the long-run aggregate supply curve.

Refer to the Above Figure