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Why Is the Long-Run Aggregate Supply Curve Vertical? Explain the Factors

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Essay

Why is the long-run aggregate supply curve vertical? Explain the factors that determine the position of the long-run aggregate supply curve.


Definitions:

Sample Variance

A measure of the dispersion or spread of a set of data points around their mean, calculated as the sum of the squared deviations from the mean, divided by the number of observations minus one.

Equal-variances Test

A statistical test used to determine if two or more samples have equal variances.

Unequal Variances Test

A statistical test used when comparing two groups that do not assume the variances of the groups are equal.

Normally Distributed

Describes data that follows a normal distribution characterized by a symmetric bell-shaped curve.

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