The long- run aggregate supply curve is
A) horizontal.
B) upward sloping.
C) downward sloping
D) vertical.

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) curve is vertical, indicating that in the long run, changes in output do not affect the price level. This is because, in the long run, all input prices adjust to changes in output, so firms can produce as much as needed without affecting the price level.

The Long- Run Aggregate Supply Curve Is