What does the vertical slope of the long-run aggregate supply curve mean? no mat
ID: 1134084 • Letter: W
Question
What does the vertical slope of the long-run aggregate supply curve mean?
no matter what the Real GDP, the price level is always the same
Real GDP always increases and never falls
Real GDP always converges to the same value in the long run
The price level is not a factor determining long-run aggregate supply
a.no matter what the Real GDP, the price level is always the same
b.Real GDP always increases and never falls
c.Real GDP always converges to the same value in the long run
d.The price level is not a factor determining long-run aggregate supply
Explanation / Answer
The correct option is d) because inthe long run the level of output is determined by factor of production such as land labor and capital and not by the price level.
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