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The LRAS Curve Is Drawn as a Vertical Line at Potential

Question 123

Multiple Choice

The LRAS curve is drawn as a vertical line at potential output (Y*) to indicate that


A) Y* is independent of the price level.
B) Y* equals actual output (Y) in the long run.
C) Y* is independent of the price level and that actual output Y = Y* in the long run.
D) Y* is independent of the price level and that actual output Y > Y* in the long run.
E) Y* is independent of the price level and that actual output Y < Y* in the long run.

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