There Is a Distinction Between the Long-Run Aggregate Supply (LRAS)

question 335

Multiple Choice

There is a distinction between the long-run aggregate supply (LRAS) curve and the short-run aggregate supply (SRAS) curve. In the long run

• A) technology is fixed, but not in the short run.
• B) the price level is constant in the long run, but fluctuates in the short run.
• C) the aggregate supply curve is horizontal, while in the short run it is upward sloping.
• D) all adjustments to changes in the price level have been made, but in the short run all changes in the price level do not occur.

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