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In the Long Run, the Aggregate Supply Curve Is Vertical

Question 81

Multiple Choice

In the long run, the aggregate supply curve is vertical because the:


A) output becomes fully flexible.
B) prices become fixed in the long run.
C) prices remain sticky, and thus the economy cannot produce more than a certain fixed level of GDP.
D) quantity of output returns to potential GDP as market prices adjust and resource markets return to equilibrium.

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