![]() What defines the number of goods and services supplied in the long-run? Why Aggregate Supply Curve is vertical in the long run To understand short-run economic variations, and how the short-run performance of the economy deviates from its long-run behavior, we need to examine both the long-run aggregate-supply curve and the short-run aggregate supply curve. ![]() In the long term, the aggregate supply curve is vertical On the other hand, in the short run, the aggregate supply curve is upward sloping. Unlike the aggregate demand curve, which is always downward sloping, the aggregate supply curve shows a relationship that depends crucially on time. Why Long-run Aggregate Supply Curve Shift?.The aggregate supply curve represents the entire quantity of goods and services that companies produce and sell at any given price level.
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