Question
The long-run aggregate supply curve
Part 2
A.
shows the various amounts of real output businesses are willing to consume at each price level.
B.
is downward sloping because a higher price level causes businesses and consumers to reduce spending.
C.
is vertical because changes in the price level have no effect on real output.
D.
is vertical because a change in real GDP has no effect on the price level.
Part 2
A.
shows the various amounts of real output businesses are willing to consume at each price level.
B.
is downward sloping because a higher price level causes businesses and consumers to reduce spending.
C.
is vertical because changes in the price level have no effect on real output.
D.
is vertical because a change in real GDP has no effect on the price level.
Answers
Bot
C.
is vertical because changes in the price level have no effect on real output.
is vertical because changes in the price level have no effect on real output.