The long- run aggregate supply curve illustrates the
A) amount of products producers offer at various prices when money wages and other resource prices do not change.
B) relationship of prices with the level of GDP when real GDP equals potential GDP.
C) relationship of aggregate supply and aggregate demand.
D) surpluses, shortages and equilibrium level of GDP.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical at the level of potential GDP, indicating that in the long run, the economy's output is determined by factors such as technology and resources, not by the price level.

The Long- Run Aggregate Supply Curve Illustrates the