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... in recent decades. CHAPTER OUTLINE I. OUTPUT GROWTH AND THE LONG-RUN AGGREGATE SUPPLY CURVE: The total of all planned production for the entire economy is referred to as the aggregate supply of real output. A. The Long-Run Aggregate Supply Curve: The long-run aggregate supply curve (LRAS) is some amount of output of real goods and services in a world in which technology is constant, the price level has not changed, labor productivity has not changed, all resources are fully employed, and people have fully adjusted to all the information they have. The curve is a vertical line relating full employment real GDP to the price level. (See Figure 10-1) B. Economic Growth and Long-Run Aggregate Supply: Economic growth is shown by the LRAS curve shifting to the right over time. A long-run growth path can be derived showing real GDP at full employment over time. (See Figures 10-2 and 10- 3) II. SPENDING AND TOTAL EXPENDITURES: The ...