When aggregate supply is vertical, economic policies concerning output are
A) largely effective.
B) marginally effective.
C) ineffective.
D) completely effective.

Question

Quizplus · Accepted Answer

When aggregate supply is vertical, the level of output is fixed and cannot be increased regardless of economic policies implemented by the government. Therefore, economic policies concerning output are ineffective.

When Aggregate Supply Is Vertical, Economic Policies Concerning Output Are