The long-run aggregate supply (LRAS) curve is drawn as a vertical line at the level of the natural level of output. a downward-sloping straight line. a upward-sloping straight line a horizontal line at the current general price level a curve that may be either upward- or downward-sloping
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Step 1: The LRAS curve represents the potential output of an economy when all factors of production are fully employed. Show more…
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The long run aggregate supply (LRAS) curve is: Group of answer choices Upward sloping Downward sloping Vertical Horizontal
Nick J.
The aggregate supply curve for the long run is: Group of answer choices Represents potential output, full employment output and is a vertical line. a vertical line when output is plotted against the price level. Potential output for the economy. the full employment aggregate supply curve.
Andrew D.
The horizontal axis is labeled real output. Points Q1, Qf, and Q2 are marked on the horizontal axis from left to right. The vertical axis is labeled price level. Points P1, P2, and P3 are marked on the vertical axis from bottom to top. A rising line labeled AS1 begins at the bottom left, passes through e (Qf, P1) and g (Q2, P2), and ends at the top-right. Another rising line labeled AS2 begins at a point that is above the starting point of AS1, passes through a (Q1, P1), b (Qf, P2), c (Q2, P3), and ends at a point that is above the ending point of AS1. Another rising line labeled AS3 begins at a point that is above the starting point of AS2, passes through f (Q1, P2), d (Qf, P3), and ends at a point that is above the ending point of AS2. Refer to the diagram. Assume that nominal wages initially are set based on the price level P2 and that the economy initially is operating at its full-employment level of output Qf. In terms of this diagram, the long-run aggregate supply curve: is a vertical line extending from Qf upward through e, b, and d; is a horizontal line extending from P2 rightward through f, b, and g; may be either AS1, AS2, or AS3 depending on whether the price level is P1, P2, or P3; is AS2.
Jerelyn N.
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