What is the difference between the long run and short run aggregate supply curve? the long run aggregate supply curve is downward sloping, while the short run is vertical. the long run aggregate supply curve is vertical and represents potential GDP, while the short run curve slopes upward. the short run aggregate supply curve represents potential GDP level, while the long run represents current GDP. the long run aggregate supply curve is above the short run aggregate supply curve.

Under the short run supply curve it is possible for the economy to produce more goods as it can…

Answered: the long run aggregate supply curve is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the difference between the long run and short run aggregate supply curve?

	the long run aggregate supply curve is downward sloping, while the short run is vertical.
	the long run aggregate supply curve is vertical and represents potential GDP, while the short run curve slopes upward.
	the short run aggregate supply curve represents potential GDP level, while the long run represents current GDP.
	the long run aggregate supply curve is above the short run aggregate supply curve.

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