The long run aggregate supply curve (LRAS) also represents
A) the full-information level of output.
B) the full-employment level of output.
C) the full-adjustment level of output.
D) all of the above.

Question

Quizplus · Accepted Answer

The long run aggregate supply curve (LRAS) represents the full-information, full-employment, and full-adjustment levels of output, where all prices and wages have adjusted to their equilibrium levels, and the economy is producing at its potential output.

The Long Run Aggregate Supply Curve (LRAS) Also Represents