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Longrun aggregate supply has this characteristicbecause the ability of the economy to produce determines longrun output. This ability is independent of pricelevels. the federal government
Longrun aggregate supply has this characteristicbecause
the ability of the economy to produce determines longrun output. This ability is independent of pricelevels.
the federal government makes up the difference between GDP and potentialoutput.
inflation adjusts the value of realGDP.
consumers adjust their decisions based on averageprice.
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