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Which of the following best explains why the long-run aggregate supply (LRAS) curve is vertical? Choose 1 answer: Choose 1 answer: (Choice A) Full employment
Which of the following best explains why the long-run aggregate supply (LRAS) curve is vertical? Choose 1 answer: Choose 1 answer: (Choice A) Full employment output depends on the price level A Full employment output depends on the price level (Choice B) Nominal wages are slow to adjust to changes in the price level B Nominal wages are slow to adjust to changes in the price level (Choice C) Nominal wages eventually adjust to changes in the price level C Nominal wages eventually adjust to changes in the price level (Choice D) Households save a large share of additional income D Households save a large share of additional income (Choice E) The spending multiplier is equal to zero E The spending multiplier is equal to zero
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