Economics Aggregate Demand And Supply Questions
The long-run aggregate supply curve represents the relationship between the overall price level in an economy and the quantity of real GDP supplied in the long run. It is vertical or nearly vertical, indicating that in the long run, changes in the price level do not affect the quantity of real GDP supplied. This is because in the long run, all input prices, including wages, adjust to changes in the price level, resulting in no change in the overall level of output.