An aggregate supply curve that is a vertical line must be:
A) a short-run curve.
B) a long-run curve.
C) an individual firm's supply curve.
D) an individual industry's supply curve.

Question

Quizplus · Accepted Answer

A vertical aggregate supply curve indicates that the level of output produced is fixed and does not respond to changes in the price level, which is only possible in the long run. In the short run, output can be adjusted, at least to some extent, in response to changes in the price level. An individual firm or industry's supply curve is not necessarily vertical.

An Aggregate Supply Curve That Is a Vertical Line Must