We distinguish between the long- run aggregate supply curve and the short- run aggregate supply curve. In the long run
A)the aggregate supply curve is horizontal while in the short run it is upward- sloping.
B)the price level is constant but in the short run it fluctuates.
C)real GDP equals potential GDP.
D)technology is fixed but not in the short run.

Question

Quizplus · Accepted Answer

In the long run, real GDP equals potential GDP because the economy is at full employment, and all resources are utilized efficiently.

We Distinguish Between the Long- Run Aggregate Supply Curve and the Short-