3.4

Long-Run Aggregate Supply

AP Macroeconomics

What Is LRAS?

Why LRAS Is Vertical

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LRAS is vertical at potential GDP — in the long run, output depends only on resources and technology, not prices

What Determines LRAS Position?

Key Point

LRAS vs. SRAS

Changes that Shift ONLY SRAS (not LRAS)

Changes that Shift BOTH SRAS and LRAS

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