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

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LAS) curve is vertical because in the long run, all inputs can be adjusted, including capital and labor. Therefore, any increase in demand for goods and services will be met with an increase in supply without affecting the overall price level.

The Long-Run Aggregate Supply LAS) Curve