We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve.In the long run
A)technology is fixed but not in the short run.
B)the price level is constant but in the short run it fluctuates.
C)the aggregate supply curve is horizontal while in the short run it is upward sloping.
D)all adjustments to changes in the price level have been made,but in the short run all changes in the price level cannot be made.

Question

Quizplus · Accepted Answer

In the long run, all factors of production and prices are able to adjust to changes, leading to a vertical long-run aggregate supply curve. This contrasts with the short run, where not all prices and wages have fully adjusted to changes in the price level, leading to an upward sloping short-run aggregate supply curve.

We Distinguish Between the Long-Run Aggregate Supply Curve and the Short-Run