The long-run aggregate supply curve is vertical because: a. the natural level of real GDP is...
Question:
The long-run aggregate supply curve is vertical because:
a. the natural level of real GDP is independent of the price level
b. there is no cyclical inflation
c. at full employment prices are stable
d. the money wage rate increases faster than the price level
Long-Run versus Short Run:
In economics, the main difference between what we call the short run and the long run is that in the short-run, the factors of production are fixed, and prices are sticky. In the long run, all factors are flexible.
Answer and Explanation: 1
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View this answer- The long-run aggregate supply curve is vertical because a. the natural level of real GDP is independent of the price level.
In the long run, the...
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Aggregate Supply Curve: Definition & Overview
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Chapter 3 / Lesson 19
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Study aggregate supply curves in economics. Learn about short-run and long-run aggregate supply curves, each curve's slope, and what factors cause these to shift.
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