Following graph is the long run equilibrium which is obtained by
the intersection of aggregate demand (AD) and long run aggregate
supply (LRAS). LRAS curve is vertical which shows that output can
not be exceeded after that level and all resources are employed at
this point. In the graph SRAS is the short run aggregate supply
curve which has positive slope showing positive relationship
between price level and real output in the short run. The
equilibrium price is P and output is Y.
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