Topic 3.4 LRAS

LRAS is vertical because...

• Price level does not change output

• GDP changes output in the short run

• GDP changes output in the long run

• Price level changes output

the LRAS corresponds with the...

• PPC Curve

• SRAS Curve

• AD Curve

• X and Y axis of the Phillips Curve

What can shift LRAS to the right?

• increase in taxes

• Increase in investment

• decrease in taxes

• decrease in investment

How long is the "Long Run"?

• 6 months

• 1 year

• long enough for prices to adjust

• long enough for aggregate demand to adjust

The long run aggregate supply curve is vertical because...

• Price level increases but GDP doesn't

• GDP increases but price level doesn't

• GDP decreases but price level doesn't

• Price level decreases but GDP doesn't

The long-run aggregate supply curve is also known as

• The natural rate of inflation

• Full-employment

• The natural rate of employment

• Cyclical unemployment

What is the vertical line called on the AD/AS Model?

• short-run aggregate supply
• aggregate demand
• long run aggregate supply
• r GDP

The LRAS is also known as

• The natural rate of unemployment

• A recessionary gap

• An inflationary gap

• The natural rate of employment