The SRAS curve is vertical at the natural level of real output.

Question

Quizplus · Accepted Answer

The SRAS (Short-Run Aggregate Supply) curve is not vertical; it slopes upwards, indicating that as the price level increases, the quantity of goods and services supplied in the short run increases. The vertical curve is the Long-Run Aggregate Supply (LRAS), which is vertical at the natural level of output, showing that in the long run, the total output is determined by the economy's resources and technology, not by the price level.

The SRAS Curve Is Vertical at the Natural Level of Real