The long-run aggregate supply curve is:
A) upward-sloping.
B) downward-sloping.
C) horizontal.
D) vertical.
E) none of the above.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical because in the long run, all factors of production can be adjusted, including capital, labor, and technology. Therefore, the level of output is only determined by the economy's potential output or natural level of output.

The Long-Run Aggregate Supply Curve Is