When the aggregate supply curve is vertical,which of the following is NOT true?
A)The economy is at capacity.
B)The economy is producing the maximum sustainable level of output.
C)Any increase in the price level will not cause an increase in aggregate output.
D)The economy is expanding quickly.

Question

Quizplus · Accepted Answer

A vertical aggregate supply curve implies that the economy has reached its full potential output, meaning it is not expanding quickly. Option D is incorrect.

When the Aggregate Supply Curve Is Vertical,which of the Following