Refer to the diagram. The long-run aggregate supply curve is:

Because there is no formal agreement among the participating firms, firms that engage in tacit collusion are exempt from prosecution under the anti-trust laws

Indicate whether the statement is true or false

Suppose that the consumer price index at year-end 2004 was 140 and by year-end 2005 had risen to 150. What was the inflation rate during 2005?

What will be an ideal response?