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AD-AS Model and Efficiency

APMACR-ND1HXF

Why is a portion of the Aggregate Supply curve drawn as vertical in the AD-AS model?

I. It demonstrates allocative efficiency.
II. It demonstrates full employment output at any price level.
III. It shows that output is determined by supply and efficiency factors, not price level.

A

I only.

B

II only.

C

I and II only.

D

III only.

E

II and III only.