The long-run aggregate supply curve illustrates the
A) surpluses, shortages and equilibrium level of GDP.
B) amount of products producers offer at various prices when money wages and other resource prices do not change.
C) relationship of the price level and real GDP when the economy is at full employment.
D) relationship of aggregate supply and aggregate demand.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the relationship between the price level and real GDP when the economy is at full employment, indicating that output is at its potential level regardless of price changes.

The Long-Run Aggregate Supply Curve Illustrates the