Answer to Question #63535 in Macroeconomics for Hans

Question

Assume that prices do not turn out as expected. Mark the correct statements.

Select one or more:
a. Actual aggregate output lies on the LAS curve, but not on the AS curve.
b. Actual aggregate output lies neither on the AS curve nor on the LAS curve.
c. Actual aggregate output lies on the AS curve and on the LAS curve.
d. Actual aggregate output lies on the short-run AS curve, but not on the long-run LAS curve.

Answer 1

b. Actual aggregate output lies neither on the AS curve nor on the LAS curve.