Question: Aggregate supply includes both short-run and long-run aggregate supply. 1. State the long-run relationship between the price level and the quantity supplied of Real GDP.

Aggregate supply includes both short-run and long-run aggregate supply.
1. State the long-run relationship between the price level and the quantity supplied of Real GDP.
2. Draw an LRAS curve. Label each axis.
3. Explain why the LRAS curve is vertical.
4. Define the term “Natural Real GDP.”

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