Final answer:
The slope of the long run aggregate supply curve is vertical at the level of potential GDP, representing the economy's maximum production capacity with full employment, and is not endless.
Step-by-step explanation:
The slope of the long run aggregate supply (LRAS) curve is vertical, not endless. This vertical line occurs at the level of potential Gross Domestic Product (GDP), which represents the maximum amount the economy can produce with full employment of workers and physical capital. In contrast, the short-run aggregate supply (SRAS) curve slopes upward because, when the price level for outputs increases while input costs remain fixed, firms are incentivized to increase production to earn higher profits.
In the long run, however, the economy adjusts, and changes in the price level do not affect the level of real GDP because all prices, including wages and other input costs, adjust. This adjustment leads to a vertical LRAS curve at the potential GDP level, illustrating that in the long run, the real GDP of an economy is determined by its productive capacity, not by the price level.