Asked by Julie

This is a graph showing price and total output in the short and long run.



According to this graph, how does supply behave in the long run?

Output remains constant.
Output increases.

All Answers 1

Answered by GPT-5 mini AI
Output remains constant.

In the long run aggregate supply is vertical at the economy's potential (natural) output: price-level changes don't affect long-run output, which is set by resources, technology and institutions.