If the long-run aggregate supply curve is vertical, the ________ a change in net taxes on aggregate output in the long run is zero.
A) absolute value of
B) additional tax revenue resulting from
C) multiplier effect of
D) change in government spending based on

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve being vertical indicates that output is determined by factors such as technology and resources, not by price levels. Therefore, the multiplier effect of a change in net taxes on aggregate output in the long run is zero, as changes in net taxes or government spending do not affect the total output in the long run.

If the Long-Run Aggregate Supply Curve Is Vertical, the ________