Which of the following accurately indicates the relationship between the short-run and long-run aggregate supply curves?
A)In the short run,aggregate supply is sloped upward to the right,and in the long run,it is vertical.
B)In the short run,aggregate supply is vertical,and in the long run,it is sloped upward to the right.
C)In the short run,aggregate supply is downward sloping,but in the long run,it is sloped upward to the right.
D)In the short run,aggregate supply is sloped upward to the right,but in the long run,it is downward sloping.

Question

Quizplus · Accepted Answer

In the short-run, prices and wages are sticky and do not fully adjust to changes in demand or supply, resulting in an upward-sloping aggregate supply curve. In the long run, prices and wages are flexible and fully adjust to changes in demand or supply, resulting in a vertical aggregate supply curve.

Which of the Following Accurately Indicates the Relationship Between the Short-Run