The long- run aggregate supply (LAS) curve
A) has a positive slope.
B) is horizontal.
C) has a negative slope.
D) is vertical.

Question

Quizplus · Accepted Answer

The LAS curve is a vertical line because in the long run, the economy is able to produce at its full potential and is not affected by temporary shocks. The LAS curve represents the level of output that can be produced using all available resources in the economy, including labor, capital, and technology. Any changes to aggregate demand only affect the price level, not the level of output in the long run.

The Long- Run Aggregate Supply (LAS) Curve