The absolute level of AS or output is limited by the potential output constraint a nation faces.

Name: The absolute level of AS or output is limited by the potential output constraint a nation faces.
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Question

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The absolute level of Aggregate Supply (AS) or output in the long run is limited by the potential output, which is determined by the nation's resources, technology, and institutional structure, representing the maximum sustainable output the economy can produce.

The Absolute Level of AS or Output Is Limited by the Potential