The long-run aggregate supply curve shows that long-run economic growth:

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is vertical, indicating that in the long run, changes in the price level do not affect the economy's output level. Therefore, long-run economic growth does not depend on the rate of inflation. Instead, it depends on factors such as increases in the quantity and quality of labor, capital stock, and technological advancements.

The Long-Run Aggregate Supply Curve Shows That Long-Run Economic Growth