How can the long-run,or natural,level of real output be represented?
A)by a LRAS that is an upward-sloping line
B)by a LRAS that is a downward-sloping line
C)by a LRAS that is a horizontal line
D)by a LRAS that is a vertical line

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) is represented by a vertical line because, in the long run, the level of real output is determined by factors such as technology and resources, not by the price level.

How Can the Long-Run,or Natural,level of Real Output Be Represented