If full-employment GDP is equal to $4.2 trillion, the long-run aggregate supply curve looks like: A vertical line at $4.2 trillion of GDP.
The long-run supply curve is a curve that shows the manner in which the price level and GDP will relate when all prices are completely dynamic. It is vital to note that the long-run supply curve has a perfect vertical shape and when there is a change in the aggregate demand, the resultant output will experience a temporary shift.
The static nature of the long-run supply curve is often because its vertical line hardly shifts given that it only experiences a temporary change when there is a change in the aggregate demand.
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