Long Run Average Supply (LRAS) - Explained
What is Long Run Average Supply?
Written by Jason Gordon
Updated at March 27th, 2023
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What is Long-Run Average Supply (LRAS)?
The Long-Run average supply curve shows the relationship between price level and real GDP if all prices (including nominal wages) were fully flexible.
Note: In the long-run supply curve, the price can change along the curve, but the output will not change - as it reflects the full employment output.
Back to:ECONOMIC ANALYSIS & MONETARY POLICY
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