Question

The long-run aggregate supply curve is vertical because: minimum wage sets the long-run wages. the price level is constant in the long run. wages and prices are only sticky in the short run, not in the long run. consumers tend to buy the same quantities over the long run.

Answer 1

Answer:

The correct answer is the second option: The price level is constant in the long run.

Explanation:

To begin with, the concept of the "aggregate supply" refers to the total amount of goods and services that firms are willing and are able to offer at a certain price level given and at a determine period of time. Moreover, at the long-run the aggregate supply curve is not affected by many variables as it is in the short run and this is due to the fact in the long run the economy is said to be at full capacity and optimally and also because the changes in the aggregate demand are only affective in the short run to the economy's total output.