The long run aggregate supply curve is vertical because
A) a change in the level of prices will have no effect on real output in the long-run.
B) the production possibilities curve is vertical.
C) the aggregate demand curve is downward sloping.
D) technology increases at a constant rate.
A
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The perfectly competitive firm shown in Figure 9-6 is currently producing 180 units of output. To maximize profit, it should
a.
increase output until ATC is maximized
b.
reduce output to 140 units
c.
reduce output to 100 units
d.
raise its price and lower its output
e.
raise its price and raise its output
The difference between the price of electronic equipment in a retail store and on the Internet partly reflects:
A. the value of personal attention and support at a retail store. B. the extent to which middlemen drive the price up for extra profit. C. excessive markup. D. the lack of competition between brick and mortar stores and online stores.