On the long-run aggregate supply curve, a. an increase in the price level increases the level of potential GDP. b. an increase in the price level increases the aggregate quantity of GDP supplied. c. an increase in the price level has no effect on the aggregate quantity of GDP supplied. d. an increase in the price level reduces the aggregate quantity of GDP supplied.

Option B is correct. In the long run in the aggregate supply curve, an increase in the price level increases the aggregate quantity of GDP supplied.

What is meant by aggregate supply curve?

This is the term that is used to refer to the total output in a given economy which the firms in that economy are going to produce and also sell. This is otherwise referred to as the GDP of a particular area.

It shows what would happen to prices and nominal wages in the economy in the long run based on the facts that the prices are flexible. Hence we can say that In the long run in the aggregate supply curve, an increase in the price level increases the aggregate quantity of GDP supplied.

Read more on aggregate supply here: https://brainly.com/question/14748223

#SPJ1