The long- run aggregate supply curve is found:
A) to the right of the point of intersection between short- run aggregate supply and aggregate demand
B) at the full- employment level of output
C) at the point of intersection between short- run aggregate supply and aggregate demand
D) eft of the point of intersection between short- run aggregate supply and aggregate demand

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical at the full-employment level of output, 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 Is Found