The long-run aggregate supply curve is
A)vertical.
B)negatively sloped.
C)positively sloped but extremely steep.
D)almost flat.
E)positively sloped at low levels of real GDP and vertical at high levels of real GDP.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical as it represents the level of output an economy can produce when all its factors of production are used at their long-run equilibrium levels. This level is unaffected by changes in prices or demand in the long run.

The Long-Run Aggregate Supply Curve Is