An assumption on the LRAS curve is
A) technology remains unchanged.
B) an increase in the average price level occurs.
C) the economy is operating to the right of the production possibilities curve.
D) labor productivity is increasing.

Question

Quizplus · Accepted Answer

The LRAS curve assumes that technology remains constant, meaning that there are no improvements or advancements in production methods or efficiency. All other options suggest changes or improvements in the economy or factors of production.

An Assumption on the LRAS Curve Is