The long-run aggregate supply curve (LRAS)is represented by a ________ curve with respect to the CPI.
A)horizontal
B)upward-sloping
C)downward-sloping
D)vertical

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve (LRAS) is vertical because it represents the economy's maximum sustainable output level, which is not affected by changes in the price level (CPI).

The Long-Run Aggregate Supply Curve (LRAS)is Represented by a ________