In the Long Run,the Shape of the Aggregate Supply Curve

question 3

Multiple Choice

In the long run,the shape of the aggregate supply curve is

• A) upward-sloping, because output can be increased only at higher costs
• B) horizontal, because all inputs are variable
• C) horizontal, because markets become perfectly competitive
• D) vertical, because further expansion of output is unprofitable, regardless of prices
• E) downward-sloping, because firms must ultimately charge lower prices in order to sell more output

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