Long-run aggregate supply has characteristic

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Reference no: EM131101693

Long-run aggregate supply has this characteristic because

1-consumers adjust their decisions based on aggregate price.

2-the federal government makes up the difference between GDP and potential output.

3-inflation adjusts the value of real GDP.

4-the ability of the economy to produce determines long-run output. This is independent of price.

Reference no: EM131101693

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