The long-run aggregate supply curve intersects the horizontal axis at the:
A)Potential level of output
B)Current level of output
C)Expected rate of inflation
D)Actual rate of inflation

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the economy's potential output when all resources are utilized efficiently. Therefore, it intersects the horizontal axis at the potential level of output.

The Long-Run Aggregate Supply Curve Intersects the Horizontal Axis at The