What determines national output on the long-run aggregate supply curve?
A) the natural rate of output
B) the price level
C) aggregate demand
D) government policy

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is determined by the natural rate of output, which is the level of GDP attainable when the economy is at full employment. This is not directly affected by the price level, aggregate demand, or government policy in the long run.

What Determines National Output on the Long-Run Aggregate Supply Curve