The long-run aggregate supply curve is
A) U-shaped.
B) horizontal.
C) upward sloping.
D) vertical.

Name: The long-run aggregate supply curve is A) U-shaped. B) horizontal. C) upward sloping. D) vertical.
Brand: Quizplus
Rating: 5.0 (44 reviews)

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) curve is vertical because in the long run all factors of production, including physical capital, human capital, and technology, can be adjusted to meet changes in prices. Therefore, output can increase or decrease without affecting input prices.

The Long-Run Aggregate Supply Curve Is