Describe the long run aggregate supply curve.

Initially the curve is perfectly elastic. This means without raising the price level, output can increase. Output then becomes increasisngly less responsive to changes in the price level until the curve is perfectly inelastic. this is when changes in the price level do not effect output. Resources are very scarce.

Answered by Parth P. Economics tutor

3155 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives


What are barriers to entry?


What does the term comparative advantage mean? How can I use this in an essay based question?


Using an example, explain the term ‘factors of production’. (5 Marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences