The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price level have no effect on long run supply. This feature is consistent with which of the following theories. sticky price theory liquidity theory the classical dichotomy the invisible hand

The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price level have no effect on long run supply. This feature is consistent with which of the following theories. sticky price theory liquidity theory the classical dichotomy the invisible hand

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter20: Aggregate Demand And Supply

Section20.A: The Self Correcting Aggregate Demand And Supply Model

Problem 5SQ

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Question

The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price level have no effect on long run supply. This feature is consistent with which of the following theories.

sticky price theory

liquidity theory

the classical dichotomy

the invisible hand

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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