In the real business cycle model,the short-run aggregate supply curve is always the same as ________.
A)long-run aggregate supply
B)the long-run aggregate demand schedule
C)the velocity of money
D)the real rate of interest

Question

Quizplus · Accepted Answer

In the real business cycle model, the short-run aggregate supply curve is vertical, meaning it is based on the economy's productive capacity in the long run. Therefore, it is always the same as the long-run aggregate supply curve.

In the Real Business Cycle Model,the Short-Run Aggregate Supply Curve