The classical long-run aggregate supply curve is

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The classical long-run aggregate supply curve is vertical at the level of potential real GDP, which represents the maximum sustainable output level in the long run without generating inflationary pressures. This is because in the long run, all factors of production are fully utilized and technology is assumed to be constant, so any increase in aggregate demand beyond potential real GDP will only lead to higher prices but not higher output.

The Classical Long-Run Aggregate Supply Curve Is