Because the long- run aggregate supply curve is vertical, firms will produce all they can in the long run
A) when the price level is high.
B) at any given price level.
C) when the price level is moving downwards.
D) when the price level is low.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, meaning it is not affected by changes in the price level. Therefore, firms will produce at their full potential regardless of the price level, as long as there are no other constraints such as limited resources or technology.

Because the Long- Run Aggregate Supply Curve Is Vertical, Firms