Explain Why the Long-Run Aggregate Supply Curve Is Vertical

question 1

Essay

Explain why the long-run aggregate supply curve is vertical.

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Definitions:

Word-of-Mouth Referral

A natural and unpaid form of promotion in which satisfied customers recommend products or services to their friends or family members.

BCG Matrix

A strategic business tool devised by the Boston Consulting Group to help organizations analyze their portfolio of products or services based on market growth and market share.

SBUs

Strategic Business Units are individual units within a larger company that operate as separate businesses, each with its own mission, products, and market.

Portfolio

A collection of investments held by an individual or institution, which could include stocks, bonds, real estate, and other financial assets.