The belief that changes in price level have no effect on the long-run quantity of final goods and services the economy can produce is illustrated by the

A) upward-sloping aggregate demand curve.

B) downward-sloping aggregate supply curve.

C) long-run vertical aggregate supply curve.

D) short-run upward-sloping aggregate supply curve.

Question

Social Studies

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16 December, 19:09

The belief that changes in price level have no effect on the long-run quantity of final goods and services the economy can produce is illustrated by the

A) upward-sloping aggregate demand curve.

B) downward-sloping aggregate supply curve.

C) long-run vertical aggregate supply curve.

D) short-run upward-sloping aggregate supply curve.

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Answers (1)

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Joy Morales · Answer 1

C) long-run vertical aggregate supply curve.

Explanation:

Long-run vertical aggregate supply curve shows the belief that changes in price level of goods and services don't effect on the long-run how much final goods and services an economy can produce. This means if the price of something is rising there will be no increase in the quantity being produced, that is why this curve is vertical.

On the long-run what effects the quantity of final goods and service are the amount of workforce and technological advancement. More people working or new technologies can increase the quantity of final goods and services produced.