Help!!
1. What does a vertical AS curve inform us about employment and risk of inflation?

2. Why is the long run AS curve vertical?

1. It informs us that we have reached natural rate of unemployment and that any inflation will lead to its reduction

2. Means that the curve is inelastic in the long run

Explanation:

1. Vertical as curve is aggregate supply curve in the long run at the maximum level of output and it matches the cross section of short and long run Phillips curve and that is natural rate of unemployment. AS curve says that regardless of price changes we have a steady level of output, meaning that this curve is rather inelastic. Any shift in prices up, due to inflation will result in economy's overheated output, which will result in reduction of unemployment to the unsustainable levels.

2. It is vertical as it is inelastic, meaning that regardless of price changes the output for the entire economy in the long run will stay at approximately same level

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to