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The curve is vertical at full employment. Which curve is being referred to in this statement?

A. Short-run aggregate demand
B. Long-run aggregate demand
C. Long-run aggregate supply
D. Short-run aggregate supply

User Rikky
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1 Answer

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Final answer:

The curve being referred to in the statement is the Long-run aggregate supply.

Step-by-step explanation:

The curve being referred to in the statement is C. Long-run aggregate supply.

At full employment, the long-run aggregate supply curve becomes nearly vertical because the inputs of labor and machinery in the economy are fully employed and cannot be increased further to produce more output.

User Nteetor
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