Question

Which of the following best explains the implications of a vertical lras curve?

A. economies are always experiencing growth
B. economies are always at full efficiency
C. prices can never change

Answer 1

Answer B

Step-by-step explanation:

The idea behind long-run aggregate supply is that the output economy produces depends on its resources and available technologies. Prices in the long run have time to adjust and they do so at the level equal to the economy's potential output. At this full employment output, economy is facing with natural rate of unemployment.