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The Keynesian LRAS Curve is composed of three phases. The LRAS Curve is nearly vertical in the third phase. What does this mean?
A. Tje economy is inefficient
B. The economy is inefficient
C. Th e economy is nearly completely efficent

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C.

This is because all resources are almost being used and to their full potential, therefore there are few idle resources and thus is efficiency.

The economy is nearly completely efficient. This is because all resources are almost being used and to their full potential, therefore there are few idle resources and thus is efficiency.

Why is the LRAS vertical in economics?

The LRAS is vertical because, in the long run, the potential output an economy can produce isn’t related to the price level. There are only two things that matter for potential output:

  • the quantity and the quality of a country’s resources
  • how it can combine those resources to produce aggregate output.

What is an LRAS curve?

You can think of the LRAS curve as taking that dot (which represents a certain amount of capital goods and a certain amount of consumption goods), figuring out the real value of that output, and then graphing the real value of that output in a new model.

Learn more about LRAS curve here-https://brainly.com/question/10669934

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