Answer to Question #237228 in Macroeconomics for Calista

Question

Distinguish between the short-run aggregate supply curve and the long-run aggregate supply curve.
Motivate with a diagram

Please may I have a detailed solution

Answer 1

The short-run aggregate supply curve is represented by an upward slope as businesses supply more as a result of price increase. On the other hand, The long-run aggregate supply curve is not represented by a curve but a vertical line which indicates the maturity of the market.