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AP® Macroeconomics

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Shape of Long-Run Aggregate Supply

APMACR-98KZWF

Which of the following statements best explains the shape of the long-run aggregate supply curve (LRAS)?

A

LRAS is upward-sloping because in the long run some prices are sticky.

B

LRAS is vertical because in the long run all prices are flexible.

C

LRAS is downward-sloping because most firms do not have their production planned very far into the future.

D

LRAS is vertical because it is fixed by the Federal Reserve.

E

LRAS is upward-sloping because in the long run all prices are flexible.