Refer to the figure. Which of the long-run aggregate-supply curves is consistent with long-run equilibrium?

a. both LRAS2 and LRAS3
b. LRAS3
c. LRAS1
d. LRAS2

Ans: d. LRAS2

Economics

You might also like to view...

In the two-sector growth models, the size of the labor force, the proportion of the labor force devoted to research, and the productivity of researchers determine the

A) investment necessary for steady-state growth. B) steady-state capital stock. C) growth rate of labor-augmenting technological change. D) human capital stock.

Economics

Which of the following conditions can help prolong the life of a cartel?

A) There are only a few firms in the market and they all belong to the cartel. B) There are many firms in the market that are not members of the cartel. C) It is difficult to know what price any cartel member is actually charging. D) The cartel has no ability to punish members who cheat on the cartel.

Economics