The long-run aggregate supply curve is vertical because
A. at full employment prices are stable.
B. there is no cyclical inflation.
C. potential GDP is independent of the price level.
D. the money wage rate increases faster than the price level.
Answer:C
The long-run aggregate supply curve is vertical because
A. at full employment prices are stable. B. there is no cyclical inflation. C. potential GDP is independent of the price level. D. the money wage rate increases faster than the price level.