Economics Aggregate Demand And Supply Questions Medium
The long-run aggregate supply curve represents the relationship between the overall level of output in an economy and the price level in the long run. It is a vertical line that indicates the maximum potential output that an economy can produce when all resources are fully utilized and there are no supply constraints. In the long run, the aggregate supply curve is not affected by changes in the price level, as it is determined by factors such as the availability of resources, technology, and the size of the labor force. Any changes in the price level will only result in changes in the overall price level, without affecting the level of output in the long run.