The long-run aggregate supply curve shows the
A) maximum GDP the nation will ever produce.
B) full-employment level of real GDP.
C) level of real GDP associated with a constant price level.
D) level of output at which real GDP equals nominal GDP.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the full-employment level of real GDP, where all resources in the economy are utilized efficiently.

The Long-Run Aggregate Supply Curve Shows the