Answered

A vertical long-run aggregate supply curve indicates which of the following?

A. Attempts to increase real output through government stimulus will likely be successful.
B. There will always be structural unemployment, and full employment is impossible.
C. There are inefficiencies, and the factors of production are not fully utilized.
D. Attempts to increase real output by stimulating consumption will not increase real output.



Answer :

GinnyAnswer

Final answer:

The vertical long-run aggregate supply curve shows that changes in aggregate demand only temporarily impact the economy's total output.


Explanation:

The vertical long-run aggregate supply curve indicates that in the long run, the economy can achieve its natural level of employment and potential output at any price level. It reflects economists' belief that changes in aggregate demand only temporarily affect the economy's total output. This means that attempting to increase output above its natural rate can result in inflation and recession, and trying to keep it below the natural rate may lead to deflation and expansion.


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