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AP MacroeconomicsAggregate Demand & Supply

Long-Run Aggregate Supply

Long-run aggregate supply is the total supply of goods and services when all factors of production are fully employed.

In the long run, an economy's potential output is determined by its factors of production, such as labor, capital, and technology. Changes in the price level do not affect the quantity of goods and services supplied in the long run. The LRAS curve is vertical.

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