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.

---

Definitions:

Computed Tomography

A diagnostic imaging procedure that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Magnetic Resonance Imaging

A noninvasive medical imaging technique used to visualize detailed internal structures of the body using magnetic fields and radio waves.

Positron Emission Tomography

A medical imaging method employing radioactive materials to observe and quantify variations in metabolic activity, as well as alterations in blood circulation, local chemical makeup, and uptake.

Electroencephalography

A non-invasive method of recording electrical activity of the brain through sensors placed on the scalp, used in diagnosing and treating neurological diseases.