regarding aggregate supply, which of the following is true of pushing for high levels of output?\nit is…
regarding aggregate supply, which of the following is true of pushing for high levels of output?\nit is neither sustainable in the short-run nor in the long-run.\nit is sustainable in both the short-run and the long-run.\nit is possible in the long-run, but not in the short-run.\nit is possible in the short-run, but not in the long-run.
Answer
Brief Explanations:
In aggregate supply theory, in the short run, firms can temporarily increase output beyond the long-run potential by using existing resources more intensely (e.g., overtime for workers, running factories longer). However, in the long run, aggregate supply is determined by the economy's productive capacity (labor, capital, technology). Pushing output above this sustainable level leads to inflationary pressures, and the economy will revert to its long-run potential output, making the high output unsustainable long-term.
Answer:
It is possible in the short-run, but not in the long-run.