The long-run aggregate supply curve is represented by
A)an upward-sloping line
B)a downward-sloping line
C)a vertical line
D)a horizontal line
E)any of the above; it depends on the relationship between the actual and the expected price level

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the economy's potential output level in the long run, which is not affected by changes in the price level. Therefore, it is represented by a vertical line, indicating that the level of output is fixed regardless of changes in prices.

The Long-Run Aggregate Supply Curve Is Represented by