Question

A vertical aggregate supply curve, where the quantity of output is consistent with many different price levels, also implies: ________.

A. an upward sloping Phillips curve.
B. a downward sloping aggregate demand curve.
C. a vertical aggregate demand curve.
D. a vertical Phillips curve.

Answer 1

D. a vertical Phillips curve.

Step-by-step explanation:

As we know that the aggregate demand does not impact the production quantity. In the case when the total supply is in vertical so the total demand does not impact the quantity of an output

Also aggregate demand may result in change in the price level for inflation

So as per the given situation, the option d is correct

Hence, the same is to be considered