In the long run:
A)aggregate demand is fixed.
B)aggregate supply is fixed.
C)aggregate demand tends to shift to the right.
D)aggregate supply tends to shift to the left.

Question

Quizplus · Accepted Answer

In the long run, aggregate supply is fixed because factors of production such as labor, capital, and technology do not change significantly. Therefore, changes in aggregate demand will not result in long-term changes in output or employment levels, but only in changes in the price level.

In the Long Run