7 min read
This study guide covers Long-Run Aggregate Supply (LRAS), including its definition as potential output at full employment, its vertical curve representation, its relationship to the Production Possibilities Curve (PPC), and factors that shift the LRAS curve (quantity/quality of resources and policy). It also includes practice questions and tips for the AP Macroeconomics exam.
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Question 1 of 12
Which of the following best describes the long-run aggregate supply (LRAS) curve? 🤔
It represents the actual output of an economy
It shows the relationship between price level and actual output
It illustrates the economy's potential output when all resources are fully employed
It slopes upward, reflecting increasing output at higher prices