The aggregate supply curve that defines the level of full employment or potential output based on a given amount of resources,efficiency,and technology in the economy is called:
A)short-aggregate supply curve.
B)long-run aggregate supply curve.
C)intermediate aggregate supply curve.
D)none of the above.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is the curve that represents the level of potential output or full employment in the economy based on the given amount of resources, efficiency, and technology. It is not affected by short-term changes in prices or demand, and it assumes that all factors of production are fully utilized. Therefore, the correct choice is B - long-run aggregate supply curve.

The Aggregate Supply Curve That Defines the Level of Full