Multiple Choice
The long-run aggregate supply curve is vertical because, in the long run:
A) nominal wages are sticky and therefore output cannot respond to change in price.
B) the price level cannot change and therefore firms have no incentive to increase output.
C) the real wage is constant and therefore firms have no incentive to change output.
D) the real wage is zero and therefore no additional labor is available to produce extra output.
Correct Answer:

Verified
Correct Answer:
Verified
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