The position of the long-run aggregate supply curve
A)is determined by the things that determine output in the classical model.
B)is at the point where the unemployment rate is zero.
C)shifts to the right when the price level increases.
D)is at the point where the economy would cease to grow.

Question

Quizplus · Accepted Answer

The position of the long-run aggregate supply curve is determined by the factors that affect potential output in the classical model, including the availability of resources, technology, and labor force. It is not affected by changes in the price level or the unemployment rate.

The Position of the Long-Run Aggregate Supply Curve