To find:
Reason for verticalness of LRAS
Answer to Problem 22MCQ
Option C is correct.
Explanation of Solution
Long run
Option C is correct as aggregate price level keeps on fluctuating between P1 and P2.
Option A is not correct as aggregate price level is not flexible in the long run
Option B is incorrect as aggregate price level has no effect on the aggregate quantity supplied is incorrect,
Option D is incorrect as aggregate price level is not constant in the long run.
Option E is incorrect as aggregate price level is not positively related to
Chapter 7R Solutions
Krugman's Economics For The Ap® Course
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