x

Capacity, not current demand

Capacity, not current demand

Side-by-side graphs comparing Keynesian LRAS with spare-capacity, bottleneck, and full-capacity sections to classical LRAS as a vertical line at full-employment output

Long-run aggregate supply shows the economy's productive potential: the real GDP it can produce when resources are fully and sustainably used.

2.3.3 Long-run AS Lesson

  1. A Level
  2. /Economics
  3. /2.3.3 Long-run AS