The belief that changes in price level have no effect on the long-run quantity of final goods and services the economy can produce is illustrated by the
a) upward-sloping aggregate demand curve.
b) downward-sloping aggregate supply curve.
c) long-run vertical aggregate supply curve.
d) short-run upward-sloping aggregate supply curve.

C) long-run vertical aggregate supply curve.

Explanation:

Downward and Upward sloping aggregate demand curves will show how the dropping or rising of price level will affect the quantity of output demanded.

While long-run and short-run aggregate supply curves show how the price level relates to the quantity of production of goods and services. In short-run upward-sloping aggregate supply curve it shows the belief that “the quantity supplied increases when the price rises”.

While the long-run vertical aggregate supply curve shows the beliefs of economists that in long-run is only the labor, capital and technology that can affect the quantity of final goods and services that one economy can produce.

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