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

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all inputs can be adjusted to their optimal levels, allowing the economy to operate at its potential output. This means that changes in the price level do not affect the amount of output the economy can produce in the long run.

The Long-Run Aggregate Supply Curve