3 Aggregate Supply in the Long Run Recall from chapter 3: In the long run,output is determined by factor supplies and technology Y=F(K,L) Full-employment output does not depend on the price level,so the long run aggregate supply (LRAS)curve is vertical: CHAPTER 9 Introduction to Economic Fluctuations slide 13 slide 13 § Recall from chapter 3: In the long run, output is determined by factor supplies and technology § Full-employment output does not depend on the price level, so the long run aggregate supply (LRAS) curve is vertical: Y  F (K , L) 3