In the long run, the aggregate price level has no effect on the quantity of aggregate output supplied.

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Quizplus · Accepted Answer

In the long run, the economy is considered to be at full employment, where the quantity of aggregate output supplied is determined by the economy's productive resources (like labor, capital, and technology) rather than the price level. This concept is illustrated by the vertical long-run aggregate supply (LRAS) curve.

In the Long Run, the Aggregate Price Level Has No