When talking about aggregate supply, it is necessary to
A)distinguish between long- run full employment and short- run full employment.
B)focus on the short run.
C)focus on the long run.
D)distinguish between long- run aggregate supply and short- run aggregate supply.

Question

Quizplus · Accepted Answer

Aggregate supply is analyzed by distinguishing between long-run aggregate supply (LRAS), which is vertical and represents full employment, and short-run aggregate supply (SRAS), which is upward sloping and can be affected by temporary factors.

When Talking About Aggregate Supply, It Is Necessary to