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What does Run Aggregate Supply Curve mean?

帮考网校2020-10-15 16:36:27
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The run aggregate supply curve (RAS) represents the relationship between the total amount of goods and services that firms are willing and able to produce and sell in an economy at different price levels in the long run. It shows the potential output of an economy when all factors of production are fully utilized and the prices of inputs have adjusted to changes in the general price level. The RAS curve is typically upward-sloping, indicating that as the price level increases, firms are willing to produce more output due to higher profits and increased incentives to invest in capital and labor.
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