Which of the following macroeconomic variables would be drawn accurately as perfectly inelastic?
A) Aggregate demand
B) Short-run aggregate supply
C) Long-run aggregate supply
D) None of these should be drawn as perfectly inelastic.

Question

Quizplus · Accepted Answer

Long-run aggregate supply is drawn as perfectly inelastic because it represents the economy's potential output in the long run, which cannot be affected by changes in prices or other macroeconomic variables in the short run. Aggregate demand and short-run aggregate supply both have a positive slope, indicating they are not perfectly inelastic.

Which of the Following Macroeconomic Variables Would Be Drawn Accurately