Why Is the Long-Run Aggregate Supply Curve a Vertical Line

question 212

Multiple Choice

Why is the long-run aggregate supply curve a vertical line?

• A) At that level of real GDP, the unemployment rate is 0 percent.
• B) At that level of real GDP, the inflation rate is 0 percent.
• C) At that level of real GDP, the production costs are at their lowest level.
• D) At that level of real GDP, production costs have fully adjusted to price changes.

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