If the aggregate supply curve is vertical, then shifts in aggregate demand will not change aggregate output.

Question

Quizplus · Accepted Answer

If the aggregate supply curve is vertical, it means that the level of output is fixed in the short run and is determined by the economy's productive capacity. Thus, shifts in aggregate demand will only affect the price level but not the quantity of output. Therefore, aggregate output will not change, and the answer is A.

If the Aggregate Supply Curve Is Vertical, Then Shifts in Aggregate