Long-run aggregate supply is defined as the period after maximum quantity produced.

• A. Time after max quantity produced
• B. Time before max quantity produced
• C. During a period when capacity is unused
• D. During a period of price stability

Answer: (A)

Long-run aggregate supply represents the economy’s capacity to produce when all inputs can adjust and resources are fully utilized. It corresponds to potential output—the maximum sustainable level of real GDP given the available resources and technology. This is why it’s described as the period after the economy has reached maximum quantity produced: once full capacity is reached, output is determined by resources and technology, not by short-run factors like price changes or underutilized capacity. The other options describe times when capacity isn’t fully utilized or focus on price movement, which are characteristics of shorter-run conditions rather than the long-run capacity.