Long-run aggregate supply is
A) the possible combinations of real GDP and inputs after full adjustments have been made.
B) the extraction of natural resources.
C) the real production of goods and services after full adjustments have been made.
D) all of the physical and human resources in the economy.

Question

Quizplus · Accepted Answer

The long-run aggregate supply (LRAS) represents the total output of goods and services in an economy when all inputs, such as labor and capital, are fully utilized at their most efficient levels. This occurs after all adjustments have been made, reflecting the economy's maximum sustainable output level without causing inflation.

Long-Run Aggregate Supply Is