7 Questions
How does the long-run aggregate supply curve (LAS) behave in response to changes in the price level?
It remains fixed
What does a vertical long-run aggregate supply curve (LAS) indicate about an economy?
Scarce resources and high production capacity
How does the long-run aggregate supply curve (LAS) differ from the short-run aggregate supply curve (SAS)?
SAS shifts with changes in price level, LAS does not
The subprime mortgage crisis was a significant event in the financial industry?
True
The long-run aggregate supply curve (LAS) is different from the short-run aggregate supply curve (SAS)?
True
A vertical long-run aggregate supply curve (LAS) indicates a stable economy?
True
Changes in the price level do not affect the long-run aggregate supply curve (LAS)?
False
Test your knowledge about the characteristics of the long-run aggregate supply curve (LAS) by determining whether certain statements about its slope and shape are true or false.
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