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The Long-Run Aggregate Supply Curve (LAS) Is Vertical Because

Question 290

Multiple Choice

The long-run aggregate supply curve (LAS) is vertical because


A) the quantity of potential real GDP does not change when the price level changes.
B) real GDP can never be greater than potential GDP.
C) businesses do not have any incentive to produce more than potential GDP.
D) the price level does not change when the quantity of potential real GDP changes.
E) potential GDP never changes.

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