Q
Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
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A
A. Is vertical because an equal change in all prices and wages leaves output unaffected
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B
B. Is positively sloped because price expectations and wages tend to be fixed is the long run
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C
C. Shifts right when the government raises the minimum wage
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D
D. Shifts left when the natural rate of unemployment falls
Correct Answer:
A. A. Is vertical because an equal change in all prices and wages leaves output unaffected
