With the price level measured on the vertical axis and output measured on the horizontal axis, the long-run aggregate-supply curve
A)is vertical.
B)is upward-sloping.
C)is horizontal.
D)is downward-sloping.

Question

Quizplus · Accepted Answer

The long-run aggregate-supply curve is vertical because in the long run, output is determined by technology, capital, and labor, but not by the price level. Thus, changes in the price level do not affect the long-run aggregate supply.

With the Price Level Measured on the Vertical Axis and Output