LONG-RUN EQUILIBRIUM: The condition that exists for the aggregate market when the product, financial, and resource markets are in equilibrium simultaneously. This condition is made possible by flexible wages and prices and is represented by the intersection of the AD (aggregate demand) curve and the LRAS (long-run aggregate supply) curve. See also | long-run aggregate market | aggregate market | product markets | financial markets | resource markets | equilibrium | flexible prices | aggregate demand | long-run aggregate supply |
