When talking about aggregate supply, it is necessary to
A) focus on the short run.
B) focus on the long run.
C) distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve.
D) distinguish between the long-run aggregate supply curve and the long run aggregate demand curve when all adjustments to price level changes have been made.

Question

Quizplus · Accepted Answer

It is necessary to distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve when discussing aggregate supply. It is important to understand the differences in the two curves and how they react to changes in the economy's price level. Focusing on just the short run or the long run alone would not provide a comprehensive understanding of aggregate supply. Option D is incorrect as it does not fully address the need to distinguish between short-run and long-run aggregate supply curves.

When Talking About Aggregate Supply, It Is Necessary to