In the long run
A) the aggregate supply curve is upward sloping.
B) real GDP is equal to potential GDP.
C) aggregate supply depends on the price level.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

In the long run, real GDP is equal to potential GDP, reflecting the economy's full employment output independent of the price level. This is why the long-run aggregate supply curve is vertical, not upward sloping, and does not depend on the price level.

In the Long Run