FIGURE 3 LONG-RUN AGGREGATE SUPPLY
The long-run aggregate supply (LRAS) curve is vertical, reflecting the assumptions of classical economic analysis. In the long run, all variables in the economy can adjust, and the economy will settle at full employment at output Q0. Changes in the amount of resources available, the quality of the labor force, and technology can shift the LRAS curve to the right to LRAS1, at a new full employment output at Q1.