The long-run aggregate supply curve is
A)upward-sloping and becomes steeper at output levels above the full-employment output.
B)upward-sloping and becomes flatter at output levels above the full-employment output.
C)horizontal.
D)vertical.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because, in the long run, the economy's output is determined by factors such as technology and resources, not by the price level.

The Long-Run Aggregate Supply Curve Is