The aggregate supply curve for the economy is horizontal in the long run.
Is the long-term aggregate supply curve vertical or horizontal?
The long-term aggregate supply curve is a vertical line at the production potential. The intersection of the aggregate demand and supply curves determines an economy's long-term equilibrium real GDP and price level.
Is the supply curve horizontal over the long term?
The long-term supply curve is horizontal in a sector (a constant-cost sector) where expansion has no impact on input prices. An industry with rising production costs, sometimes referred to as an industry with rising costs, has a long-term supply curve that slopes upward.
To know more about Economy visit:-
https://brainly.com/question/2421251
#SPJ4
