Long-run aggregate supply is equal to
A) short-run aggregate demand.
B) short-run aggregate supply.
C) inflation minus unemployment.
D) potential output.

Question

Quizplus · Accepted Answer

Long-run aggregate supply represents the capacity of an economy to produce goods and services when all inputs (including labor) are fully employed. This is equivalent to potential output or full employment GDP.

Long-Run Aggregate Supply Is Equal to