Answer to Question #62913 in Macroeconomics for Adam

Question

Aggregate supply curve ... (multiple answers may be correct)
(a) is vertical in the long run because, in the long term, expected prices are equal to the actual ones.
(b) is moved to the right if the potential output rises.
(c) shows a positive relationship between the price level and output in the short run.
(d) is not affected by the expectations formation processes.

Answer 1

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