Question
Which statement is NOT true regarding the long-run aggregate supply (LRAS) curve? a - The LRAS curve assumes that inflationary pressures are higher than normal.
Which statement is NOT true regarding the long-run aggregate supply (LRAS) curve?
a - The LRAS curve assumes that inflationary pressures are higher than normal.
b - The LRAS curve assumes that further increases in output will lead to higher prices.
c - The LRAS curve is vertical.
d - The LRAS curve assumes that prices, wages, and interest rates are flexible.
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
