Because it represents the amount that would be produced after prices are completely able to change, the long-run aggregate supply curve is vertical. The natural rate of production (Yen), or the amount of output the economy produces while unemployment is at its natural rate, is depicted by the LRAS curve.
The merchant can increase sales by offering a range of prices. A producer is more likely to draw many customers than one who has a fixed pricing if they are willing to negotiate with them about the price. Final consumers have access to reasonably priced goods and services.
What causes the long-term aggregate supply curve to be vertical?
Because it represents the amount that would be produced after prices are completely able to change, the long-run aggregate supply curve is vertical. The natural rate of production (Yen), or the amount of output the economy produces while unemployment is at its natural rate, is depicted by the LRAS curve.
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