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QUESTION 11 Why is the LRAS curve perfectly inelastic (vertical)? Because in the long, prices and the natural rate of output become fixed at a
QUESTION 11 Why is the LRAS curve perfectly inelastic (vertical)? Because in the long, prices and the natural rate of output become fixed at a certain amount and cannot change because of economic fluctuations. Because in the long run, all prices and output and employment become flexible. O Because in the long run, the natural rate of output is not determined by price, but rather by an economy's factors of production. Because in the long run, the economy is getting the maximum benefit from its factors of production
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