If potential GDP is equal to $1500 billion,what does the long-run aggregate supply curve look like?

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the level of output that the economy can produce over the long run, given its resources and technology. In the question, potential GDP is given as $1500 billion, which represents the maximum level of output that can be produced by the economy in the long run. Therefore, the long-run aggregate supply curve is a vertical line at $1500 billion of GDP, indicating that the economy can only produce this level of output in the long run, regardless of the price level.

If Potential GDP Is Equal to $1500 Billion,what Does the Long-Run