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Long Run Aggregate Supply
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Problem 10
Long Run Aggregate Supply
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17. Aggregate Demand and Aggregate Supply Analysis / Long Run Aggregate Supply / Problem 10
Problem 10
Evaluate why the LRAS curve is represented as a vertical line in the AD-AS model.
A
Because real GDP is determined solely by consumer demand in the long run.
B
Because real GDP is unaffected by changes in technology in the long run.
C
Because price level directly affects the quantity of real GDP in the long run.
D
Because price level does not affect the quantity of real GDP in the long run.
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