The Long-Run Aggregate Supply Curve (LAS) Is Vertical Because

question 290

Multiple Choice

The long-run aggregate supply curve (LAS) is vertical because

• A) the quantity of potential real GDP does not change when the price level changes.
• B) real GDP can never be greater than potential GDP.
• C) businesses do not have any incentive to produce more than potential GDP.
• D) the price level does not change when the quantity of potential real GDP changes.
• E) potential GDP never changes.