The third phase of the Keynesian LRAS

1 answer:

4 0

The third phase of the Keynesian LRAS Curve shows the economy at full employment. This means that the factors of production are being used at full capacity.

<h3>What do you mean by long-run aggregate supply?</h3>

Long-run aggregate supply can be defined as the output that an economy can produce while using all the factors of production and operating at full employment level.

The third phase of the Keynesian LRAS curve shows that the economy is at full employment which means that factors of production are being used at full capacity.

Therefore, B is the correct option.

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