The LRAS (Long-Run Aggregate Supply) curve represents the total amount of goods and services an economy can produce when all resources are fully employed. It shows the maximum potential output in the long run.
Related terms
Potential GDP: The level of real GDP an economy can produce at full employment and without inflationary pressures.
Productivity: The efficiency with which inputs are transformed into outputs, affecting an economy's ability to increase its production.
Economic growth: An increase in an economy's ability to produce goods and services over time.